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Business / Auto China

Global brands go local for new-energy subsidies

By Li Fangfang (China Daily) Updated: 2014-05-26 07:13

Global brands go local for new-energy subsidies

The Zinoro 1E from BMW Brilliance has entered the market through only rental and long-term leasing. Photos provided to China Daily

Another German automaker BMW has also made headway in localization of electric vehicles in China.

Earlier in May, BMW Brilliance celebrated the first anniversary for its locally developed Zinoro brand with the lease of the first model 1E.

As the first e-drive sport activity vehicle in the country, the 1E is also the only premium new-energy vehicle available only for rent or leasing.

"The 1E comes with a worry-free solution, which means we are opening the door of premium e-mobility to the public," said Olaf Kastner, president and CEO of BMW Brilliance.

Global brands go local for new-energy subsidies
BMW line-up at 2014 Beijing auto show 

The 1E costs 400 yuan a day or 7,400 yuan a month with a three-year lease. The price includes license plate registration, insurance and a package of services.

Built in Shenyang, Liaoning province, the car is listed in both the national electric vehicle and Beijing local catalogs.

"As well as individuals, many companies and institutions are showing interest in renting the new vehicle," said Kastner.

Although yet to be eligible for a free license plate in Shanghai as an imported brand, US electric carmaker Tesla is also considering the rental business.

Yang Guoping, chairman of Dazhong Transportation Group, said his Shanghai-based company is in talks with Tesla, but did not disclose further information.

AA Yongche, a company renting cars by the minute, announced a 100-unit order of the Tesla Model S, which would make it one of the first Chinese buyers.

The firm said the rental price for the Model S will be 1.5 yuan per minute, "making the Tesla close to who wants the experience".

Shanghai-based eHi Auto Services Co also said it has ordered hundred units of Model S for its local fleet.

Yongche.com has approached Tesla for a future order of 10,000 Model S vehicles, while China Auto Rental, the leader in the country, also announced a possible cooperation with Tesla.

Zhang Zhiyong, an auto industry analyst, said it will be a favorite cooperation for Tesla, as the leasing business will help it avoid the challenges in distribution network construction.

"More importantly, without paying 700,000-plus yuan, more consumers interested in the Tesla can easily experience the Model S," said Zhang. 

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