The Chinese government has decided the state will be offering manufacturing licenses to the companies that want to build electric cars, in a bid to spark interest for the sector and hasten its adoption.
The Chinese government, which has to head the largest auto market and the second biggest economy in the world, has had rising problems with the adoption of electric cars, which are far below the internal target envisions some years back, even as the state offered incentives and other subsidies to consumers and automakers. The new drive will have permits being given to the companies that intend to build electric cars – solely for that purpose though – read a statement posted on the National Development and Reform Commission’s website. In order to be able to apply for a new permit to build electric vehicles, the firms need to have expertise in designing, testing and assembling electric cars, and also patents and intellectual property rights to the core technology being used in the manufacturing process.
China is aiming to lift the sales and production of electric autos in order to lower its reliance on imported oil while also cutting tailpipe emissions as it battles pollution on a nationwide level. The country has been reportedly experimenting with the idea of having special permits for companies that want to manufacture such vehicles but don’t necessarily belong to the traditional roster of the automotive industry – and now the official announcement only comes as a confirmation of what is seen a drive towards speeding up innovation and increasing competition in the field.