In 2012, Pang Yicheng, CEO of the industry information provider Beijing EV Future Information Technology Co, visited Shifeng Group, a manufacturer of agricultural trucks, tractors and diesel engines, based in Gaotang county, Shandong province.

Pang was amazed by the size of the assembly lines for low-speed electric vehicles, which have a range of 100 km at an average speed of 50 to 60 km per hour. The company has an annual production capacity of 200,000 of these vehicles.

"A top Shifeng executive told me, 'If large State-owned companies like SAIC Motor don't develop low-speed electric vehicles, they can still deliver a good performance. But if we don't, our company will die for sure,'" recalled Pang.