E-cars: Market in seach of a jolt

A source close to State Grid said the power supplier has about 400 charging stations across the country but all are losing money.

It has seven stations in Shenzhen, Guangdong province that each lose 13 million yuan on average annually, the source told the New Express Daily in Guangzhou.

In a notice released in July, the central government called for private capital to play a bigger role in the country's charging network .

It also offers preferential electricity prices for those who build and run charging stations and allows them to charge service fees. But many are intimidated at the investment required and the bleak near-term prospects.

"It is evident that running charging stations will not make money in the early stages," said Niu Jinming, director of the Beijing New-Energy Vehicle Promotion Center.

"So government policies should play their part. Those who run public charging stations should be allowed to explore new business models."

But Niu acknowledged that authorities "are crossing the river by feeling the rocks" and don't have a clear picture of what business models can work.

Fu Yi, deputy general manager of Shenzhen-based Potevio New Energy Co Ltd, said the industry is in urgent need of standards and supervision.

"Charging infrastructure is crucial if we want to push the new-energy vehicle industry to a new stage. But we are in dire need of the most basic regulations.

"There is not a single department that supervises the industry in either the central government or local governments. What we do is not an industry - it is an experiment."

Lin Boqiang, an economist on energy studies at Xiamen University, said the lack of consumer enthusiasm is not surprising if buyers can't find a realistic way to charge their cars.

"It is the chicken or the egg dilemma. If there are not enough electric vehicles, those who run charging stations will lose money but if there are not enough charging stations people won't buy electric vehicles. The market alone will not solve the problem," said Lin in an interview with the People's Daily.

Statistics show the number of private electric vehicles in Beijing by early September was just 1,000. There were more than 4 million private conventionally powered cars on the road in the capital city at the end of 2013.

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