Around one-third of Chinese governments cars should be electric

Published Date : Jul 14, 2014

Lead for purchases of new-energy saving vehicles will be taken by the central government ministries and other agencies. These vehicles are referred in China as electric vehicles, fuel-cell autos, plug-in hybrids. This ration will go beyond 2016, as local province will be made to meet the target.

Electric cars should make up for around 30 percent of government purchases of vehicle by the year 2016 has been mandated by China. This measure has been undertaken to fight against pollution and to reduce energy use after there was an exemption of autos from a purchase tax.

Due to the growing concerns by customer over reliability, convenience, and price of the new vehicles, China is taking measures to provide more support for these vehicles as the demand is not growing.

Government in China has identified electric vehicles as a strategic industry and is helping the industry to gain global leadership. These measures will also help to reduce dependence on energy and to reduce smog which often reaches to dangerous levels in Beijing and other cities.

According to a Hong Kong based analyst this is a high-praise aspiration. The analyst also has estimated that the purchase will contribute to less than 10 percent of the China’s total new vehicle sales. The analyst also stated that these purchases by government are not growing as quickly as private consumption; hence, relying only on the government purchase can prove to be a challenge.

In the past week, China has declared a waiver of 10 percent purchase tax for these new-energy vehicles, and excludes them from levy during the beginning of 1st September till the end of 2017.