Who Killed The Electric Car?
It’s an uphill battle for green vehicles in Hong Kong

By Grace Tsoi | Feb 24, 2011

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  • Who Killed The Electric Car?
  • Who Killed The Electric Car?
  • Who Killed The Electric Car?

Imagine a hot summer day. You’re crossing the street, stuck in the median because of unsynchronized lights. Countless cars are whizzing by, emitting hot, black, dirty smoke into your face. You can’t help coughing, and even breathing gets difficult. Sound familiar? It should be: Hongkongers are all-too-frequent victims of roadside pollution.

Given that car owners are unlikely to suddenly abandon their vehicles and start riding the MTR, it seems to be an unsolvable problem—but there are glimmers of hope, thanks to advances in green-car technology. In recent years, electric cars have been hailed as vehicles of the future; they are emission-free and energy-efficient. Hong Kong even has its own homegrown brand of electric vehicles (EVs), a line called myCar. But the abysmal figures speak for themselves; there are very few EVs in the city. So why aren’t there more electric cars? What has hampered the adoption of these seemingly perfect vehicles in Hong Kong?

Too many things to count. First, there’s an ongoing debate about the true benefits of EVs. The obvious perk is that they do not emit any greenhouse gases. Regular diesel cars spit out hydrocarbons, nitrogen oxide, carbon dioxide and carbon monoxide. Some naysayers argue, however, that after a widespread switchover to EVs the sources of these pollutants will become power plants, which produce the electricity needed to charge the cars. But others dispute that claim.

“There won’t be waste gases on the roads,” responds Eric Cheng, a professor in the Department of Electrical Engineering at Hong Kong Polytechnic University, who is also one of the brains behind myCar. “The filters of diesel cars are not that good because of their small sizes. But those of power plants could perform three to four times better than the filters of vehicles, thus trapping a lot more pollutants.”

Electric cars are, naturally, far more energy-efficient than diesel cars, meaning they don’t require much input to get a lot of output. “For motors of EVs, energy efficiency can reach 85 to 90 percent. But for motors of diesel vehicles, efficiency rates only hover around 15 to 20 percent,” Cheng says. According to Cheng, fuel motors only generate energy after a process that involves combustion and burning, which itself requires a lot of energy to initiate. Electric motors, on the other hand, create a magnetic field to power a car, saving energy.

Drivers can also save on fuel. Cheng estimates that the cost of running a diesel car is around $1 to $2 per kilometer, while electric vehicle drivers only need to spend $0.15 to $0.20 per kilometer on electricity.

There are other pros, too. Contrary to common misconceptions, EVs can perform much better than their fuel-powered counterparts. Cheng says EVs generate a larger maximum torque (a physicist’s word for force), making engines much more powerful. Diesel engines can take a while to start up; electric motors react instantly. Fuel engines may stall from time to time because the process of combustion doesn’t start. If you drive an electric vehicle, you won’t have that problem.

Distance ranges are a concern, but not for Hongkongers. Given the current technology, on one charge the batteries of electric cars can last long enough to travel 100 to 150 kilometers. In other countries, drivers worry about breaking down before they’ve reached their destination. But Hong Kong is more compact. “From east to west, the driving distance might only be about 50 kilometers. Drivers could drive the EVs for a couple of trips [without recharging],” Cheng says.

But despite these benefits, electric cars are far from popular. According to the Environment Bureau, as of January 31, there were a total of 96 EVs in Hong Kong—and 22 of them were bought by the government. A number of corporations, including two electricity companies, Hong Kong Electric and CLP Group, have also purchased EVs. That means very few individuals, if any, have bought them.

But at least Hong Kong isn’t alone in its low purchase rates. “When compared to other countries, the number of electric cars in Hong Kong isn’t too small. Many countries are facing a similar situation, and the key factor is that the price of a car is too high,” says K.T. Chau, a professor in the Department of Electric and Electronic Engineering at the University of Hong Kong. “If you purchase an electric vehicle, you have to pay three times more than for a diesel car. Not many individuals can afford it, unless they are very rich or really want to be environmentally friendly.” Even though the government waives some of the taxes that usually apply to car purchases for EVs, they are still a lot more expensive than diesel cars. For example, a Mitsubishi’s i-MiEV, one of EVs available in Hong Kong, costs $395,000.

And given the current technology, it’s unlikely prices will drop anytime soon. “It is a big problem, because lithium batteries are very expensive. Within a short time, we do not think there will be any technological breakthroughs,” Chau says. Lithium is a rare element, and therefore very expensive. Pricey batteries alone account for 30 to 60 percent of the total cost of an electric car. Chau also sees another problem with lithium batteries—their life cycles can be quite short. “The life of the batteries is shorter than that of the vehicle. Let’s say the vehicle can last for seven years. The batteries could only last for three to four years, and that means drivers have to [pay to] change batteries,” Chau adds.

There are two ways of charging the batteries of electric cars. Standard charging means connecting the plug to a socket for five to eight hours, after which the car will be ready to drive for 100 to 150 kilometers before it needs another recharge. It is also possible to use a quick charger, and the battery can get 80 percent charged after just 10-20 minutes. In terms of charging infrastructure, in fact, Hong Kong is not doing badly. Right now, there are about 260 standard charging points throughout the city. However, there are only 3 quick chargers: in Ap Lei Chau, Jordan and Hong Kong Science Park.

It’s unintuitive, but quick chargers are sometimes not more convenient than regular ones, and building more of them also might not be feasible anyway given the dearth of EVs in Hong Kong.

“Quick chargers require a lot more electricity. At home, we use 15 amperes. But a quick charger will need 100 to 200 amperes, and that is a difference of 10 times,” says Chau, who estimates setting up a quick charger costs about $1 million. “It might be worthwhile to build up the infrastructure, but only if the penetration rate of EVs is 10 percent or above. But if there are only few EVs in Hong Kong, the infrastructure will be underutilized.” Cheng adds that different brands of EVs need different kinds of quick chargers—and this makes it even more difficult to make quick chargers as available as, say, gas stations.

Electric vehicles also call for a change in mindset. “Drivers need to change their habits. They have to think about the time and place for charging,” Cheng says. They have to calculate how long their batteries will last, and always plan ahead to reserve a couple of hours to charge the batteries. They may not be able to drive as freely because it’s important to carefully monitor their routes. Otherwise, if it runs out of energy, the car will just stall.

Hong Kong transport regulations are also out-of-date in light of new EV technology. “In theory, all EVs are not permitted on highways,” Chau says. “In the early days of regulation, pistol displacement was the yardstick for officials to judge whether a car is allowed on highways or not. But an EV doesn’t have pistol displacement because it doesn’t have a fuel tank.” Right now, the government can issue an expressway permit under the Road Traffic Regulations to a registered owner of an EV—but it’s still the hassle of one extra step. Adds Chau, “If you tell a car owner that he has to obtain approval from the government, he might worry about it.”

We see the promise in the development of EVs, and their spread throughout Hong Kong. But there simply aren’t as many electric cars as we would like to see—due to simple availability, technological bottlenecks, insufficient infrastructure, a reluctance to adjust driving habits and outdated transport regulations. But we remain hopeful that one day polluting cars will be phased out, and EVs will become the new norm on Hong Kong’s roads.

Why Buses Can’t Go Green

It would make sense for public transport to embrace electric cars—were that plan not impossible to execute.

The government has already put a lot of effort into pushing electric cars in Hong Kong. First, the registration tax for them is waived. More new car models will become available soon; more charging points will be built. However, all these efforts to encourage private ownership of electric vehicles (EVs) and to improve air quality will be in vain if the government doesn’t also insist upon their use in public transportation.

“Private cars make up a tiny percentage of overall roadside emissions. If the government would apply as much effort, energy and time to commercial diesel vehicles like buses and trucks, we would make serious improvement in air quality,” says Joanne Ooi, Chief Executive Officer of the Clean Air Network. “We think that the government has an excessive emphasis on private cars. It is really to a large extent beside the point, and it’s the government paying lip service.”

Ooi points out that the usage of public transportation in Hong Kong is among the highest in the world—but that the vehicles within the system are outdated and emit a lot of waste gases. According to think tank Civic Exchange, 40 percent of roadside emissions in Hong Kong actually come from franchised buses; most buses run on old and highly polluting pre-Euro, Euro-I or Euro-II engines.

In Hong Kong, there are about 450,000 private cars registered, making up a majority—about 70 percent—of all the vehicles registered. The government is offering to completely suspend the first registration tax if you purchase an EV for yourself, which, in theory, encourages the public to buy more electric cars. But, Ooi says, “this contradicts the government’s stated policy to discourage the augmentation of the private passenger car fleet.”

Within the public transportation system, taxis and minibuses are owned by small- and medium-sized enterprises, while big corporations control bus companies. Due to the high cost of EVs, it would be more feasible for the bigger, richer bus companies to start incorporating them first. However, it is not at all easy to do so.

“Bus companies are under a profit control scheme. Under this scheme, they are guaranteed to make a profit of more than 10 percent. Even if the companies are willing to use new technology, their assets will increase, and they will be able to transfer the cost to citizens [by raising prices]. The government has no power to say no,” says Thomas Choi, Senior Environmental Affairs Officer at Friends of the Earth. Under this system, which dates back to colonial times, there are a lot of obstacles for the government if it decided to introduce EVs for public transport. For one, the government would be accused of supporting bus companies’ money-making goals. There’s no easy solution.

Here’s a case study:
As early as 2001, AMSPT, the second-largest green minibus company in town, actually carried out experiments to test the feasibility of introducing electric vehicles. However, the results were disappointing. “A petroleum-powered minibus can run 300 kilometers a day,” says Chan Man-chun, AMSPT’s Executive Director. “If the batteries lasted for 300 kilometers, then it would be good. But it doesn’t work if the batteries only last for 100 to 120 kilometers.” He points out that the operation of green minibuses would be seriously disrupted if the vehicles had to be charged twice or three times a day—even if it’s for, say, 20 minutes.

Space is also another problem, since it’s not realistic to charge minibuses in their terminals. “The government gives us very little land for terminals. Let’s say there are 20 minibuses running on the same route. If it’s not possible to put 10 charging minibuses in the terminals, then where would the passengers get on the bus?” Chan asks. It’s even more difficult to acquire land for facilities like charging stations in busy areas like Mong Kok and Causeway Bay.

Chan says that the company is interested in embracing more green technologies—but that it’s is unlikely to happen if the logistics and cost-benefit analysis of doing so remain untenable. And that’s a calculus that, unfortunately, applies to all efforts to use electric cars for public transport in Hong Kong.

Hong Kong’s Only Homegrown Car

PolyU’s myCar project is making progress, but its success isn’t without obstacles.

Everyone—Chief Executive Donald Tsang, especially—thinks that Hong Kong relies exclusively on the financial industry for recognition on the world stage. It seems that most other industries have been weeded out, manufacturing in particular, which has largely relocated to the mainland because of lower production costs there. But to everyone’s surprise, Hong Kong has succeeded in developing its own electric car, myCar, which is the brainchild of experts from Hong Kong Polytechnic University.

Facing competition from companies such as Tesla, Mitsubishi, Nissan and Shenzhen’s own BYD, it is already a big achievement for Hong Kong to breed its own brand of electric vehicle (EV). But this little company has also earned international accolades. First of all, myCar is the first EV made in Hong Kong and the mainland to earn a certification from the European Union. Its reception has been largely positive, too—it was also named the “Electric Vehicle of the Year” at London’s Green Fleet Awards in 2008.

Right now, myCar’s two-seater vehicle is also available for sale in many European countries, including France, Italy, Austria and Denmark. EuAuto, the company that developed myCar with PolyU, has since merged with US automaker GreenTech Automotive (GTA). It is now eyeing the United States and Europe for expansion opportunities, and its first step toward penetrating those markets is to build a large-scale car factory in Mississippi.

The idea for myCar began growing in 2002. “At that time, Professor Li Tak-Chi from the design school told me that they were doing a summer project with an Italian designer. They were seeking new designs for automobiles. He told me that there might be some business opportunities,” says Andrew Young, Director of Partnership Development at Hong Kong Polytechnic University, who has been following the project since day one. “I was very doubtful about it in the beginning. Hong Kong has never manufactured cars, and there is no car industry.”

But the idea was not as absurd as it first sounded. “We picked a market segment in micro-cars,” Young says. “There are so many car manufacturers competing with bigger cars. We can’t compete against them. The concept of micro-cars is widely accepted in Europe… Then we decided to produce a lightweight vehicle that would appeal to the younger generations.” After putting in a lot of effort, the team finally secured some investors in Hong Kong.

MyCar didn’t plan to produce EVs from the outset. “We first planned to do gasoline engines, and there would be a side line of EVs… We estimated that about 80 to 90 percent of sales would be driven by gasoline versions, and only 10 percent from EVs,” Young says. However, this assumption was overturned in 2005, as the European Union changed standards for engines, hindering the development of new vehicles with gasoline engines. At that time, it was a big shock for PolyU’s developers, since the survival of the project was at stake. But the regulatory change also opened up new doors, as they decided to be more adventurous and focus on EVs.

“The biggest encouragement is that I have witnessed a dream come true, when so many people have been discouraging and telling me that it’s impossible to achieve,” Young says. The disparagement hasn’t abated much: Even after the team succeeded in building a functional car, some say it’s too small and gripe that it’s not equipped with air conditioning.

Critics forget that myCar was born within the confines of a very tight budget. Up to now, a total of US$10 million has been invested—but the Hong Kong government’s Innovation and Technology Commission has sponsored just $2 million, 20 percent of the total. “The company didn’t really try hard to apply for funding from the government,” Young says. Because there was so much red tape involved, bureaucracy deterred the company from seeking more government funding. Professor Eric Cheng, whose research is focused on the batteries of EVs, says that he would have to spend 50 percent of his time on administrative work if he kept applying for government funding. It also takes a long time to actually get the money—usually researchers have to wait anywhere from six months to a year for it to come through.

Behind the hassles of applying for funding, many people—including officials, lawmakers and the public—harbor misperceptions regarding the value of research and development (R&D). Regulations in place for companies using government funding are rigid because the public worries that the grant money is easily misused and abused, and lawmakers demand the products of research be profitable. MyCar may not be drawing big bucks to Hong Kong at the moment, but it’s a sign of prestige rather than profit. “Science doesn’t equal returns,” Young says. “R&D is as important as culture and you cannot quantify it. It represents an investment of human capital.”

On The Market

The three electric-car models available in Hong Kong.

Mitsubishi i-MiEV

Released in: 2010
Horsepower: 47 kW
Top speed: 130 kph
Range: 160 kilometers
Charge-up time: About 7 hours (for a 200V household charger system)
Colors available: Frost white, titanium grey, cool silver, amethyst black, ocean blue, raspberry red, red/frost white
How to get it in HK: Mitsubishi Motors, Shop 1 & 2, G/F, Chinachem Century Tower, 178 Gloucester Rd., Wan Chai, 2721-1111
Ideal for: Environmentally conscious moms who need to tote the kids around
Price: $395,000

MyCar

Released in: 2007
Horsepower: 5 kW
Top speed: 64 kph (on flat roads)
Range: 113 kilometers (on flat roads)
Charge-up time: 8-10 hours; 1 hour to top-up
Colors: Pearl white, metallic sky blue, metallic green, metallic orange, sun red, silver, sweet yellow
How to get it: EuAuto Technology, Block A3, 10/F, Yee Lim Industrial Centre, 2-28 Kwai Lok St., Kwai Chung, 2334-7331
Ideal for: Practical young urban hippies on a budget, who like their drive to work to be green as well as bright, quirky and tiny
Price: $97,000

Tesla Roadster

Released in: 2010
Horsepower: 215 kW
Top speed: 212 kph
Range: 394 kilometers
Charge-up time: 3.5 hours
Colors available: Arctic white, brilliant yellow, electric blue, fusion red, glacier blue, jet black, lightning green, obsidian black, racing green, radiant red, stealing silver, thunder gray, twilight blue, very orange
How to get it: E-mail hongkong@teslamotors.com for inquiries, or visit www.teslamotors.com/hongkong and fill out a form to get an appointment with a sales representative
Ideal for: An eco-friendly fashionable trend-setter who craves speed and a sleek ride
Price: $1,070,000