Electric, hybrids shine at Shanghai Auto Show

Among the 1,300 vehicles on display, 91 are so-called "Green Vehicles", the biggest number ever showcased at the Shanghai Auto Show. Many manufacturers are trying to step up their green technology in a bid to attract more consumers.

Walking around the showroom, you can see electric or hybrid cars just about everywhere. Among them, 56 foreign models outnumber 35 domestic ones for the first time in the event's history, underscoring the way international brands are looking to tap the market for eco-friendly vehicles in China, the largest auto market in the world.

Mercedes-Benz is using the show to introduce this electric Smart, which comes with various charging options. The manager of Daimler, Ralf Noha, said, "We have three possibilities: we can charge on the households sockers, we need about 10 hours; we can charge on a wallbox, we need about four to five hours; and we can charge in a very quick way, we need about 45 minutes. Everytime the vehicle is fully charged, it can run approximately 135 kilometers depending on the condition."

Noha says this model will be launched next year in Shanghai, and is already being used back in Germany. However, when it comes to electric vehicles, both foreign and local consumers have their concerns.

Markus Jost is a visitor to the auto show. He said, "Electric cars in Germany are under coming. I mean there are some, but it's not that common yet. It's a universal problem, certainly. I mean, the electrical power supply is an issue for that. But I think the industry is working on it."

Another visitor, Qi Huidong, said, "Although the government is working on it, there's still a limited number of charging poles for electric cars. And the value of the car drops quickly as the lifetime of the battery is short. So I won't consider purchasing an electric car until all of those problems are solved."

Although government incentives, like free license plates, and reduced taxes are in place, various car manufacturers are trying to woo customers by replacing car batteries. Dr. Zhang Guoguang of Dongfeng Motor Corporation said, "We can help replace your battery to save the time for you to charge, and also if the lifetime of your battery is running out, we offer a discounted price for you to purchase a new one."

An industry analyst suggests Shanghai promote the use of such cars through a car leasing system like in some western countries, such as France. Jeffrey M. Henning from Ernst & Young said, "Some of the manufactures are aggressively using leasing programs, where the customers can lease the vehicle and then return it to the vehicle manufacturer which will remove the residual risk and the battery from the consumers."

With consumers asking questions about pure electric vehicles, many are looking instead to hybrids. Wang Ping from SAIC said, "The main power of those cars come still from gas. But at a certain stage, like when you start the engine, and when you are running at a lower speed, the car will use some of the electricity generated from the gas. It saves up to 20 percent of the gas."

Analysts from PWC Asia Pacific says China will be the biggest Asian market for green vehicles by 2020.