It’s no secret that China manufacturing can greatly reduce the cost of production across many industries. However, with politicians and the general populace demanding more green and environmental practices, how likely is that need going to be met by China? We were wondering this very thing and came across two very interesting findings, both of which are shared below.
The Sun May Shine Brighter in China
With only an estimated 0.10% of Americans using solar power in their homes, the alternative form of energy isn’t quite catching on the way we expected or hoped it would. While the U.S. government is funding companies like Solyndra, the Chinese are taking a more scorched Earth approach in that they are investing in just about every way to make solar energy, as their situation is more dire, both pollution wise and in regards to access to coal.
Which is why they are seeking to increase the solar capacity of their equipment, thereby resulting in lower production costs. The ultimate goal? Energy that is as cheap as coal without the pollution or dangers of mining it. How soon could this happen? The Christian Science Monitor believes it could be as soon as 2016.
Tesla May Finish Second
The name Tesla is associated best with the electric car, with many models on the road today, some of which are owned by celebrities and well to do environmentalists. But given the car’s hefty price tag at $69,900 to $93,400 and problems with recalls regarding charging adapters and fire hazards, many questions remain. A huge one concerns lifetime vehicle cost and some reports citing the Tesla Model S needing three times as much service as the typical vehicle leaving doubt about the vehicle’s reliability in the long term, making it no wonder the middle class isn’t buying them in droves.
But that may be changing soon. The largest auto parts manufacturer in China, Wanxiang Group, is becoming a relevant challenger to Tesla. In its latest move, Wanxiang bought Fisker Automotive earlier this year, which is best known for its Karma Hybrid. Wanxiang also bought a company that makes hybrid batteries and 20 patents that are needed to build electric cars.
With its founder offering to put every cent the company earns into making electric cars – a whopping $1.3 billion in 2013 alone – it is quite possible the next breakthrough in electric cars will come from this company.
You can read more about the Tesla vs. Wanxiang rivalry in Forbes.
If you are interested in China manufacturing and reducing costs in your own business, contact us today to see how we can help with your next project.