China Huazi Electric Car Subsidies
China Huazi Electric Car Subsidies
The Chinese government introduced subsidies to support the production of battery electric vehicles (PEVs).china huazi electric car Subsidies are currently offered in four categories: all-electric plug-in cars with a range over 250 km, hybrid-electric cars, plug-in hybrids and all-electric cars with a range of less than 250 km. Depending on the model, PEVs receive between RMB 10,000 and RMB 25,000 in subsidies. However, many local governments offer their own incentives to promote the sale of PEVs.
The Chinese government's policy was designed to help reduce China's CO2 emissions.china huazi electric car However, if the government's goal is to achieve a cleaner power mix, then electric vehicle use will have to be a bigger part of its plan. In order to do this, the Chinese government is trying to improve the charging infrastructure and increase the number of electric cars on the road.
This is not the first time that the government has tried to promote the sale of electric vehicles.china huazi electric car Back in the mid-1980s, China's Ministry of Science and Technology developed the 863 program to assist in the development of new energy vehicles. It involved a variety of companies, including universities, suppliers and automakers. As a result, a large number of PEVs have been produced in China over the past twenty years.
Aside from PEV subsidies, China has introduced a number of other initiatives to promote the manufacture and sale of electric vehicles. One of the most notable is the so-called'smart' car. It is a plug-in hybrid that is able to drive on electric power alone, as well as recharge using traditional power sources.
Various Chinese local governments have made various public statements in support of the manufacture and sale of all-electric and hybrid-electric vehicles. Some municipalities have even begun paying their manufacturers subsidies to produce electric cars. Many Chinese cities have restricted the sale of passenger cars on certain days. But the biggest challenge for the Chinese auto industry lies in transforming its product mix and consolidating its domestic manufacturing base.
As for the most important PEV-related measure, the MIC 2025 program reaffirmed the pro-PEV policies that have been in place for several years. It requires at least 10% of all motor vehicle sales overseas to be produced by a Chinese company or joint venture. Obviously, the top two PEV makers will not be determined by this scheme. Although the government may be willing to offer some incentives to foreign automakers for making and selling PEVs in China, such as credit for producing the vehicle, China must also ensure that its electric car industry is protected from foreign competition.
To its credit, the Chinese government has made several improvements to its policies, and the country is expected to make significant progress in the electric vehicle sector in the years to come. However, the country needs to do more to promote the manufacture and sales of smaller, cheaper vehicles, as well as to encourage the growth of the domestic PEV industry.
For its part, the Chinese government has invested significantly in the production and promotion of all-electric and hybrid-electric vehicles. In addition to financial incentives, the government has encouraged the development of an efficient charging infrastructure.