Wednesday, April 18th, the Energy-Saving and New-Energy Vehicle Industry Development Plan was approved at an executive meeting of the state council.
The State Council declared that China will move more quickly to develop its new-energy and energy-saving vehicle industry to ease pressure on resources and the environment. China’s auto industry will focus on the industrialization of electric and hybrid vehicles. The meeting approved a development guideline for the energy-saving and new-energy car industry.
It is estimated that China’s accumulative output of electric and hybrid cars will reach 500, 000 units until 2015 and 5 million units by 2020. In 2009 China overtook the U.S. becoming the world’s largest auto market after selling 13.64 million units that year. In 2009 and 2010 car sales and production saw an amazing growth, but then in 2011 slowed down with 2.4%.
Facing restraints from oil consumption, the government is vigorously pushing the development of new-energy vehicles. From the beginning of 2012 it has eliminated vehicle taxes for drivers of new-energy cars and vessels and halved vehicle taxes for drivers of energy-saving cars and ships. The government aims at building more battery-charging stations and create more facilities for recycling batteries.