With 140 Million Automobiles, China Stokes Global Energy Fears

The number of automobiles in China has shot past the 100 million mark. And it is expected to double within the next decade given that some 50 million cars were registered in the country from 2006 to 2010 alone.

As of last month, the total number of registered vehicles amounted to 140 million in the country of 1.35 billion, Chinese media reported on Sunday citing transportation authorities.

China, which accounts for 10 percent of the roughly 1 billion vehicles on the world’s roads, has replaced Japan as the second-largest country in terms of registered vehicles. It already surpassed the U.S. last year to become the world’s No. 1 car market in terms of annual sales of new vehicles.

The government is now focusing on developing environmentally-friendly automobiles such as electric cars in order to deal with surging oil prices and depleting reserves.

◆ Numbers Skyrocketing

Automobiles are increasing at a rate of 50,000 a day in China, posing socioeconomic problems for the country and becoming a global headache, as it is rapidly emerging as a black hole sucking up much of the world’s energy.

As of last year, daily oil consumption in China amounted to 9 million barrels, edging past 10 percent of global consumption. The International Energy Agency said in its report on the 2011 global energy forecast, which was issued last month, that China would replace the U.S. as the world’s largest oil importer by 2020.

By 2035, the report said, the total number of registered automobiles around the world is estimated to stand at 1.7 billion, more than double the present amount. And China is expected to play the leading role in reaching this level.

Mindful of such global concerns, the Chinese government plans to invest 100 billion yuan (around W18 trillion) over the next 10 years to develop and produce clean-energy cars, including 5 million plug-in hybrid vehicles running on rechargeable batteries by 2020. Until fully electric cars can be provided en masse, Beijing intends to supply the market with another 3 million hybrid vehicles.

◆ Growing Pressure on Carmakers

But the automotive industry is not at present able to keep pace with China’s grand ambitions. The country had hoped to have electric and hybrid vehicles account for five percent of global passenger car sales by now, but the actual level stands at just 0.05 percent.

As a result, Beijing has been urging foreign carmakers to form joint ventures with local companies to develop environmentally-friendly cars before authorizing them to build more factories in the country.

Hyundai Motor created a separate division within its technological research center in China to focus on developing electric vehicles. It also displayed the electric version of its compact Forte passenger car at the Guangzhou Motor Show last month, even before the vehicle was unveiled in Korea.

Volkswagen, GM, Nissan and Toyota have also announced plans to roll out electric cars in China between 2013 and 2015.

Chosun Ilbo