China: green car efforts pushed forward through five-year strategy image

The world’s largest auto market has been keen to promote the adoption of green car technology – called new-energy vehicles – and now the government might increase its efforts to promote the threshold on electric vehicle adoption through its upcoming five-year plan.

According to a Bloomberg Intelligence report, the governing Communist Party, ready to present its 13th Five-Year Plan during a plenum in October, might emphasize even further the increase of electric car charging stations and researching for improvements in battery technology – in a bid to handle the main detractors: recharging network, expenses and limited driving range because of the batteries, said in a study BI analysts Steve Man and Ji Shi. China’s new energy vehicles include plug in hybrids and electric cars, both battery and hydrogen powered. The focus on electric autos is seen as a gateway to a larger achievement – reduce pollution and cut the country’s reliance on imported oil. The government has so far given incentives to both automakers and battery producers and has allowed EVs to be acquired without any restriction across the nation. But with all the measures, today just about 220,000 electric cars are on the Chinese roads, making up just 22 percent of the current threshold set to expire at the end of the current year.

China has at least 100 carmakers – most of them small and struggling – and the latter might become easy targets for technology companies looking to enter the automotive industry and have cars manufactured under license, read the report. A slimmed down number of local automakers would also help manage funds better and allow them to try and compete on an equal level with the major, global manufacturers.

Via Bloomberg