NAVECO's electric-powered Daily was pressed into service in a pilot programme on March 10th this year after more than a year's worth of Research & Development, in the process becoming China's first production electric commercial vehicles.

NAVECO'S (Nanjing Auto Iveco) zero-emission electric Daily light bus has received a significant sales boost as China's Ministry of Industry and Information Technology (MIIT) has placed it on a list of just five vehicles that will be liable for state purchasing subsidies. Developed and built by NAVECO, a joint venture between Iveco and now Shanghai Automotive Industry Corporation (SAIC), which took over Nanjing Auto, the electric Daily was China's first production electric commercial vehicle.

At the start of the year the Chinese finance ministry revealed ambitious plans to offer generous cash subsidies for consumers purchasing new very low environmental impact vehicles. To be approved the vehicle has to be tested for energy saving abilities and be capable of mass production, by the MIIT, with its components also checked for quality and volume production capability. The subsidy is on offer is up to 50,000 yuan for a hybrid vehicle and 60,000 yuan for an electric vehicle. The subsidies are part of the Chinese authorities plans to take a global lead in developing efficient technology as well as a practical means of tackling pollution in its own cities.

NAVECO's electric-powered Daily was pressed into service in a pilot programme on March 10th this year after more than a year's worth of Research & Development, in the process becoming China's first production electric commercial vehicles. The State Grid Corporation of China (SGCC) is now using 10 of these vehicles to transport its staff and equipment. The Daily light bus is visually identical to the normal production model but the diesel engine and associated drivetrain have been replaced by a zero-emission and pollution-free electric motor and transmission. The Daily electric light bus also surpasses its class rivals in terms of efficiency as it uses 40 kWh of electricity for every 100 kilometres which equates to five litres of diesel fuel from an internal combustion engine and it has a very useful range of 220 kilometres meaning that it is a practical proposition for business operators. The electric supply is also able to power internal remote equipment which is allowing the SGCC to have mobile office features in the fleet.

As well as NAVECO'S electric Daily bus the other four vehicles on the MIIT shortlist to be available for subsidies are Jianghuai Auto's all-electric engineering vehicle, Zoyte Auto's electric minibus and BYD's F3DM plug-in hybrid sedan which was presented at the Geneva Motor Show last year and which went on sale in China last December but only to bulk buyers. The F3DM is the world's first hybrid mass-production compact sedan and is expected to be launched in Europe next year.

Meanwhile Fiat Group is currently negotiating with SAIC to give up the unusual 51-49 percent split in the NAVECO venture, China's light commercial vehicle market leader, in favour of a more normal, for China, 50-50 partnership. Fiat has been reluctant to give up its controlling stake despite the unresolved ownership issue holding back the progress of the venture. SAIC will absorb its own commercial platforms and related divisions into NAVECO once the deal has been renegotiated which is expected to be completed next month.