China to grow electric vehicle production by 2020
China’s has announced it plans to increase new energy vehicles production to 2 million units annually by 2020, according to the 2017 Electric Vehicle 100 Forum on 15 January. According to Miao Wei, head of the Economy and Information Commission (EIC), it has crafted a medium-long term development plan for the Chinese automobile industry which should boost the importance of electric cars within the sector.
The plan says by 2025 Chinese new energy car sales should account for over 20% of total new vehicle sales, and this coulld boost steel demand as the charging infrastrucure is expanded, Kallanish notes.
Buyers of electric cars already have advantages in securing number plates and in tax subsidies. In big cities like Beijing and Shanghai buyers can get plates within a month, avoiding the lottery system for plate allocation for other vehicles. Combined with steadily improving infrastructure, this has proved a successful incentive.
Official data from the China Association of Automobile Manufacturers shows in 2017 new energy vehicle sales were up 53% year-on-year to around 507,000 units. The 517,000 units produced also made China the world's No.1 producer. However it failed to reach the target of 700,000 units.
The new energy vehicle development plan over 2015-2020 details infrastructure construction and developing technical specifications. This has helped give confidence to car makers. Wang Chuanfu, the Chairman of BYD Company, says, “Our government has the most complete ...car development plan in the world, in the next five years the plan will keep helping new energy vehicles develop in China.”
China's new energy vehicle subsidies have caused some controversy however. In one case last year, companies were investigated for producing cars and selling them to their own subsidiaries. This was done in order to claim total subsidies for producers and buyers which were worth more than the value of the cars themselves.
However deputy director of the Department of Economic Construction under the Ministry of Finance (MOF) Song Qiuling is suggesting improvements to the scheme. He says that the MOF, together with the EIC, National Development and Reform Commission and Ministry of Technology has proposed a more complete subsidy policy which should ensure incentives are properly aligned.
Source: Kallanish.comChina to grow electric vehicle production by 2020
China’s has announced it plans to increase new energy vehicles production to 2 million units annually by 2020, according to the 2017 Electric Vehicle 100 Forum on 15 January. According to Miao Wei, head of the Economy and Information Commission (EIC), it has crafted a medium-long term development plan for the Chinese automobile industry which should boost the importance of electric cars within the sector.
The plan says by 2025 Chinese new energy car sales should account for over 20% of total new vehicle sales, and this coulld boost steel demand as the charging infrastrucure is expanded, Kallanish notes.
Buyers of electric cars already have advantages in securing number plates and in tax subsidies. In big cities like Beijing and Shanghai buyers can get plates within a month, avoiding the lottery system for plate allocation for other vehicles. Combined with steadily improving infrastructure, this has proved a successful incentive.
Official data from the China Association of Automobile Manufacturers shows in 2017 new energy vehicle sales were up 53% year-on-year to around 507,000 units. The 517,000 units produced also made China the world's No.1 producer. However it failed to reach the target of 700,000 units.
The new energy vehicle development plan over 2015-2020 details infrastructure construction and developing technical specifications. This has helped give confidence to car makers. Wang Chuanfu, the Chairman of BYD Company, says, “Our government has the most complete ...car development plan in the world, in the next five years the plan will keep helping new energy vehicles develop in China.”
China's new energy vehicle subsidies have caused some controversy however. In one case last year, companies were investigated for producing cars and selling them to their own subsidiaries. This was done in order to claim total subsidies for producers and buyers which were worth more than the value of the cars themselves.
However deputy director of the Department of Economic Construction under the Ministry of Finance (MOF) Song Qiuling is suggesting improvements to the scheme. He says that the MOF, together with the EIC, National Development and Reform Commission and Ministry of Technology has proposed a more complete subsidy policy which should ensure incentives are properly aligned.
Source: Kallanish.com