Hong Kong’s electric dream a step closer as China’s demands drive carmakers across the border
Rise in cost of production licence sees city ready itself to become new hub for manufacture of electric vehicles
Hong Kong wants to lure new business to the city by turning itself into a production hub for electric vehicle manufacturers – at the expense of its rivals north of the border.
A rise in the cost of a production licence on the mainland, which now costs between 3 to 4 billion yuan (US$462-616 million), has carmakers looking elsewhere to build the next generation of electric buses, cars and taxis.
The government is readying itself to take advantage, and began studying the possibility of growing the sector in Hong Kong after an increasing number of mainland car manufacturers crossed the border to explore the possibility of setting up shop in the city.
“They can enjoy the ‘Made in Hong Kong’ brand name and subcontract production of key components to the mainland,” said Dr Lawrence Poon, general manager of the research and development centre for car parts and accessories at the Hong Kong Productivity Council.
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On the mainland carmakers have to commit to producing between 50,000 to 100,000 electric vehicles, spending the billions of yuan that entails. In contrast, in Hong Kong, firms only need a World Manufacturers Identifier (WMI) qualification, which costs significantly less.