(Corrects to read 15-20 percent, paragraph 3)
By Yawen Chen and Jake Spring
BEIJING, March 6 The green energy car subsidiary
of Chinese automaker Beijing Automotive Group plans
an initial public offering in 2018, Chairman Xu Heyi said on
Monday, adding that the unit should be profitable that year.
China has aggressively promoted battery electric and plug-in
hybrid cars, including spending billions of dollars in
subsidies, in an effort to cut heavy urban smog and promote
technological innovation in its auto sector.
Xu said battery production costs for Beijing Electric
Vehicle Co, which is backed by the group's listed subsidiary
BAIC Motor Corp, are dropping by 15-20 percent per
While the central government is phasing out green car
subsidies through 2020, the firm will need government support
for only three more years at most, he said.
Xu ruled out as "totally impossible" any risk that the new
energy vehicle industry would fall off a cliff when the
government withdraws support.
(Reporting by Yawen Chen and Jake Spring; Editing by Ruth