Report – China could introduce $16 Billion EV-charging program image

According to sources that have knowledge of the matter, the Chinese government aims to establish a fund that would provide up to 100 billion yuan ($16 billion) for the construction of new electric-vehicle charging facilities.

The two people that talked to Bloomberg under condition of anonymity – they are not allowed to discuss matters that are still private – said the new policy could be announced soon, as the government is mulling options to increase the sales of cleaner autos. The sources provided no further details on the new program, such as how long the program would run or if the new chargers would be backwards compatible with already established EV models – such as the Model S sedan of US electric automaker Tesla Motors.

“Charging infrastructure and EV growth is a chicken-and-egg situation,” said Ashvin Chotai, managing director of researcher Intelligence Automotive Asia. “It’s got to be a gradual process to scale up both EV sales as well as charging infrastructure. EVs are still not very attractive when compared with conventional-powered cars.”

China – the second largest economy in the world and biggest single auto market – is also No.1 globally when talking about carbon emissions. So, the country has been vying for policies that make “new-energy” (electric, plug-in hybrid and fuel cell cars) vehicle purchases more attractive. The Chinese consumers are still weary of such models, with concerns ranging from price to reliability and usage convenience.

Via Bloomberg