Date
17 December 2017
Following feedback from the industry, China may revise the targets for production of new energy vehicles. Photo: Bloomberg
Following feedback from the industry, China may revise the targets for production of new energy vehicles. Photo: Bloomberg

China may ease electric car quotas and targets: report

China may ease proposed quotas and targets related to electric vehicles, responding to feedback from automakers which were concerned about the scale and pace of the plans, Reuters reports.

Proposed changes under discussion could see a target of new energy vehicles (NEV) making up 8 percent of sales next year pushed to 2019, it said, citing auto industry sources.

Under the draft policy released in September, authorities wanted 8 percent of automakers’ sales to be made up of battery electric or plug-in hybrid vehicles by 2018, rising to 10 percent in 2019 and 12 percent in 2020.

But now, the government is looking at scaling back some of the targets as automakers and industry bodies have said the goals are too tough and could hurt manufacturers’ interests.

New energy vehicles last year accounted for just 1.8 percent of sales in the Chinese auto market, according to Reuters.

“It’s normal to make revisions as it’s a draft plan,” An Jin, chairman of Anhui Jianghuai Automobile Group, was quoted as saying on the sidelines of China’s parliament session in Beijing.

Two executives familiar with the plans told Reuters that the government is considering options for lowering the requirements.

One idea is to reduce the quota requirement by 2 percent each year, cutting the 2018 requirement to 6 percent, a source said. It would then be 8 percent in 2019 and 10 percent in 2020.

Another option would be to push back each target by a year, with the 8 percent quota starting from 2019, according to the report.

The overall policy includes quotas for plug-in cars, targets for average fuel economy requirements, and a credit trading system to promote green energy cars while penalizing petrol cars.

According to the Reuters sources, the quota stand-off was tied to differences between the Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission (NDRC).

MIIT is said to support a more flexible credit trading system favored by automakers, while the NDRC is more aggressive in promoting a transition to electric vehicles, pushing for stricter quotas.

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe