Thursday, June 17, 2010   


Driving force

Sophie He

Monday, June 07, 2010


"A small car from Hong Kong will take a big step forward." With those words, EuAuto chairman Peter Sun Kwok-wah introduced to the United States an electric car conceived and made in Hong Kong.

EuAuto and Polytechnic University jointly developed the first home-grown MyCar but there appeared little interest from the Hong Kong government.

However, the vehicle attracted the attention of US hybrid car maker GreenTech Automotive.

"MyCar is a subcompact, it may not be suitable for the government to purchase with taxpayers' money," Sun said. "But the government can support us in spirit."

GreenTech splurged HK$100 million to buy EuAuto and plans to produce 10,000 MyCars next year in the United States.

Sun said that Hong Kong was never the target market of the electric vehicle.

So GreenTech's acquisition will enable Americans, Europeans and mainlanders to experience driving MyCar, which he hopes will become a world brand.

Sun, a Hong Kong Young Industrialist Award winner, said it has been his ambition going back two decades to design his own product.

Through his close friendship with then PolyU president Poon Chung- kwong, Sun learned that the university was trying to develop a subcompact vehicle and needed investment.

As he had his own hardware business, he took the challenge and became part of the team that produced Hong Kong's first self-designed car.

"I couldn't believe it at first. There were so many large car companies around the world. How could it be me?"

Sun said he learned later that such a venture was too small for large car manufacturers and too risky for small auto companies.

But PolyU's market analysis showed that there is a market for subcompacts. "I knew this could work," Sun said. "We had designers from Italy, a research team from Polytechnic University and the hardware industry that I am from, and together we went forward.

"The original idea was to produce a hybrid car powered by diesel, petrol and electricity, but we decided to channel all our resources on an electric car as we saw then that it was becoming a global trend."

The big day came on October 23 last year when MyCar was unofficially unveiled in Hong Kong after six years of hard work.

MyCar has a brighter future following the deal with GreenTech, under which EuAuto becomes a subsidiary of the US firm, Sun said.

"It's like my son needing the support of his stepfather to go to a good college and have better prospects."

Currently, GreenTech currently has only about 60 employees working on MyCar at its Dongguan plant in Guangdong. They include two or three overseas specialists and around eight automotive engineers in its R&D; department.

He said MyCar will have 10 times the amount of resources once the acquisition by GreenTech is completed.

EuAuto chief executive Chung Sin- ling said after the acquisition, the Dongguan factory will be expanded to boost production capacity. Current production is 1,000 cars per year.

EuAuto will sell the cars in the mainland and Europe while GreenTech will take charge of opening the US market.

"The US factory will begin operations by the end of this year and is expected to produce 20,000 cars annually in two years' time," Chung said.

Looking to the future she said: "We will also build one or two new plants and hire 500 to 600 people in Dongguan to boost capacity."

A large proportion of MyCar is assembled manually but as demand increases, more automation will be introduced, Chung said.

The company sold 200 cars in Europe in the past year and signed an agreement with Denmark to supply MyCars to Bornholm island for the use of tourists.

She said the company aims to sell 1,000 cars in Europe a year.

Among the factors in favor of MyCar apart from its greenness is that owners will pay less for fuel and maintenance.

A standard version of MyCar costs HK$97,000 in Hong Kong and 10,495 (HK$120,000) in Britain.

The chief executive is also bullish about the mainland market because Beijing is encouraging a "green economy.'

Chung said the second generation of MyCar, which can travel at a speed of 64 kilometers an hour, is already available and has been sold in Europe.

But there is still a long way before a third generation model that will be suitable for Hong Kong hits the road.

"The Hong Kong government dosen't allow electric cars with speeds of less than 80 kilometers an hour on the road. Besides, the Hong Kong market is too small to be our priority."

This means Hong Kong may have to wait at least six to nine months to see the home-grown car on our streets.

Chung said it is almost a miracle that MyCar has emerged from nothing to become the type of vehicle that the government favors - environmental- friendly and high-tech. As a bonus it was developed locally and has been commercialized.

"We are just a group of people crossing the river by feeling the stones," Chung said.

"Fortunately we are enthusiastic and have faith. But we are not going about blindly. We are armed with market analyses, cutting-edge information, a clear target and a sound strategy."

She continued: "We always say `we can make a car ourselves, there is nothing we can't do."'

She said it is fortunate that MyCar is making its mark at a time when there is great global demand for electric cars.

Sun believes MyCar shows the world the "Hong Kong spirit."

"We never gave up the dream of creating something astounding with limited resources."


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