Non-auto Firms to Make NEVs in China

Published Date : Nov 05, 2015

China infamous for its carbon emissions is making intense efforts to drive its alternative energy industry. China has pledged to cut down its carbon emissions in the coming few years substantially. China has focused intensely in developing its solar energy industry and wind energy industry and is leading in several renewable energy sectors in Asia Pacific. The dependence on fossil fuel in China is gradually reducing. To up their game, China has increased their target to cut down carbon emissions in the coming few years.

Although the fossil fuel dependence and carbon emission rate is reducing in China, the problem of pollution caused by greenhouse gas emissions is still causing a lot of health problems. The smog choking witnessed in the urban areas of China has pushed policymakers in the nation to boost its new energy vehicle sector. Citizens in China are also increasingly adopting the new energy vehicles. In a bid to propel the production of new energy vehicles (NEVs), several non-auto companies will now enter this sector.

China will allow a number of companies that are not traditionally from the auto sector to produce new energy vehicles. This announcement was made by Miao Wei who is the Minister of Industry and Information Technology.

According to the minister, dozens of non-auto firms have applied for licenses to make new energy vehicles and the ministry is presently reviewing their qualifications. He further said in a briefing that he believes in the foreseeable future many companies will get their new energy vehicle licenses. This move in China will greatly help to address the pollution problems such as smog choking.

Since September, many new energy vehicle buyers will receive license plates and they don’t have to apply via the usual lottery system. Several local government, bus companies, and public institutions have been encouraged to start using more new energy vehicle.