As the dragon continues its rise, so does the ecological consciousness of it’s people, apparently. Rising incomes is creating a booming middle class in China that is not only demanding luxury goods, but is also more aware of the environment. Maybe this is driven in part by the smog that blanketed major Chinese cities like Beijing, Shanghai, Harbin and many other cities last winter and Chinese premier Li Keqiang’s declaration of war on pollution.
This is apparent in auto sales trends in the country. Car sales of BYD, a battery and electric car maker, bucked the economic slowdown and grew 14% year on year. This was the fastest pace of growth since 2010, based on information from the China Association of Automobile Manufacturers. The company is a beneficiary of the generous subsidies and tax incentives given to electric car manufacturers by the government.
As a result, several companies are joining the bandwagon to make EV vehicles in China. This includes, as we at The Green Optimistic reported earlier, Foxconn, the company best known for making the iPhone and iPad. The company launched an EV vehicle earlier this year, the BAIC E1250 EV.
But price isn’t the only thing that matters, apparently, in the minds of the Chinese consumer. Tesla received 4,000 reservations for its Model S from China, despite the fact that the company doesn’t benefit from the tax incentives the Chinese government offers. However, Tesla CEO Elon Musk has need not worry because the Tesla S has marked its place in the minds of exotic car buyers worldwide, including those in China. It also helps that the company chose to release a red Tesla S in its press release. Red is the color of prosperity in China.
Hopefully red will become the new green as more Chinese buyers opt for an electric vehicle the next time they buy a car.