Thursday, February 19, 2015

The Chinese Government's Support for Greener Cars

For many years now China has been working to be the world leader in electric and hybrid cars. China is striving to advance its role as a global player in the production and sale of electric, hybrid and fuel efficient cars. They aim to be the leading supplier both domestically and abroad. Top selling Chinese car maker BYD is currently marketing an SUV called the Tang in the US.

China currently ranks third (behind the US and Japan) in electric car ownership.

The government set the goal to raise the country's annual production capacity to 500,000 plug-in hybrid or all-electric cars and buses by the end of 2011. In June 2012 China introduced set a sales target of 500,000 new energy vehicles (plug in electric) by 2015 and 5 million by 2020. Both pure electric vehicles and plug-in hybrid electric vehicles are subject to purchase incentives. The Chinese government has ordered electric utilities to build electric car charging stations in Beijing, Shanghai and Tianjin.

The goal of the Chinese government is to have half a million hybrid and electric cars on the road by the end of 2015 and 5 million by the end of 2020. As of 2010 there were already at least 10 different fully electric high speed cars being produced by Chinese automakers. The China Association of Automobile Manufacturers expected that sales of electric and hybrid electric vehicles in China will reach 60,000 to 80,000 units in 2014.

China is also serious about vehicular efficiency standards. Last year China announced that it would strictly enforce its 2015 efficiency standards. The government has mandated fleet average of 34 mpg by 2015, and 47 mpg by 2017. This is expected to drive an increase in fuel efficient, hybrid and fully electric cars.

The Chinese government has indicated that it will punish Chinese car makers who do not comply with its gas-mileage rules. Government sanctions will both restrict production and impede expansion of non-compliant car companies. The Chinese government will also publicly shame them by releasing their names.

The government also provides large incentives in the form of subsidies for electric cars.

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