$8,000 Electric Car to be made in China

Is an $8,000 Electric Car a Reality?

Car manufacturers Nissan, Renault and Dongfeng have signed a cooperative agreement regarding the manufacturing of affordable electric vehicles in China. The end goal of this business venture (titled eGT New Energy Automotive Company) is to produce a vehicle that can sell for roughly $8,000 USD. The three companies plan to design and manufacture a small, fully-electric SUV. This price will rival the current low-end gasoline vehicles available to the Chinese market.

This partnership comes as a response to China urging vehicle manufacturers to produce more electric vehicles. This has been encouraged through a program that requires at least 8% of sales from every manufacturer to be for electric or hybrid vehicles. The Chinese government wishes to increase electric vehicle sales to 2 million by 2020.

Nissan’s partnership in this deal will help aid its sales presence in China, owning 25% of the new company. Renault will also own 25% of this new company with Dongfeng owning the remaining 50%. The three companies will work together to design this new $8,000 SUV, with Dongfeng manufacturing the vehicle within China.

China’s vehicle importing taxes have limited the presence of none-Chinese vehicles entering the country. It appears that Nissan and Renault hope to find a workaround for these taxing laws by partnering with a Chinese vehicle manufacturer. This will allow both companies to increase their customer reach in China, a market they have struggled with in the past.

 

What to Expect from an $8,000 EV?

With such a low price, we don’t expect to see the huge batteries, futuristic interface and self-driving capabilities that manufacturers like Tesla are offering. However, we can expect a compact, convenient SUV that caters to casual drivers. We hope that this move encourages similar companies to produce cheaper, more affordable options for the mass market.

We hope that similar low-price vehicles are introduced outside of China soon. With countries such as the UK aiming for petrol-free roads by 2040, we should see a drastic decrease in the pricing of EVs soon enough.