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GM aims EVs at China's two-wheeled commuters

n China's cities, a couple of hundred million people commute to work every day on electric bicycles. Those people would love to have a car, which would cost a bit more but would offer protection from the rain.

General Motors is trying to figure out how to offer them an upgrade - an affordable electric car for people who commute on two wheels. During a recent trip to China, I saw GM's first attempt at an entry-level electric car: the EN-V, a two-wheeled Jetsons-like vehicle on display in the lobby of GM's Shanghai office.

"This is like upgrading from a black and white TV to a color TV," says John Du, director of GM's Science Lab.

I disagree with Du's assessment. A Chinese consumer might spend an extra 100 yuan ($15) to upgrade from a black-and-white TV to a color set. Upgrading from an electric bike to an electric car, no matter how basic, would involve considerably more.

Especially if it is as sophisticated as the EN-V. Deceptively simple-looking, the EN-V includes technology that talks to other vehicles to avoid collisions. It's hard to image how GM could make this vehicle cheaply.

An electric bike costs as little as 2,500 yuan. An entry-level minicar such as the Chery QQ or BYD f0 costs a bit more than 30,000 RMB.

To hit the sweet spot between those two choices, GM needs to price its electric vehicle at no more than 25,000 yuan, figures Frank Chou, a former GM China executive who works for PAC Group, a consultancy in Shanghai.

"There is a definite movement in China to create a segment of low-end electric vehicles to replace the low-end auto segment," Chou says. But if GM can't meet that price target, the company "is just dreaming," he adds.

Du's concept - an entry-level electric car for the masses - is a radical departure for the auto industry. Other automakers typically aim their EVs at prosperous urbanites who are willing to spend extra money for "green" transportation.

Du admits GM doesn't yet know what the acceptable price range would be for an entry-level electric vehicle, or even who the target consumer is.

Says Du: "We are going to do research on this. But we are pretty sure the 200 million e-bike riders will view this like a TV upgrade."

That's what Du hopes to find out. The China Science Lab, which Du calls "my baby," so far is just a dirt field in the Shanghai district of Pudong. But it will conduct research on half a dozen topics, including person-vehicle interaction, basic battery research and alternative powertrains. 

One project that his China Science Lab will work on is lithium-ion battery composition. "We are hoping to make a better lithium-ion battery," Du says.

Better, okay. But it also will need to be pretty darn cheap.