New Energy Vehicles to Receive a Further Fillip in China

Published Date : Jul 23, 2014

China’s wants to ensure that its pollution-reduction plans aren’t mired in red tape, regional protectionism, or the lack of policy regulation. The country is leaving no stone unturned to entice consumers into purchasing new-energy vehicles instead of those that run on gasoline and diesel. China’s State Council issued a comprehensive guideline Monday that paves the way for promoting new-energy automobiles in the country. Among other development plans, the guideline talks about increasing the number of electric charging facilities for vehicles and doing away with regional protectionism.

This new guideline emphasizes on mapping charging facilities and creating world-class technological standards for the same. The government has urged non-governmental organizations to fund this project by participating in the construction of charging facilities across the country.

The guideline lays down 25 specific policies, of which seven specifically relate to the improvement of charging facilities on several fronts including: affordable electricity prices, urban planning to efficiently accommodate such facilities, and effecting technological improvements. The government is keen to being about standardization with these guidelines, which prohibit local governments from making their own standards pertaining to charging facilities as well as new-energy vehicles. Furthermore, regional governments will not have the authority to ask auto producers for additional requirements. This, the government hopes, will increase the penetration of electric and new-energy vehicles in mainland China as well. 

The Chinese government will start from its own offices, with the public sector poised to set an example in the use of alternative energy automobiles, according to the guideline. It also adds that over the next two years, alternative energy vehicles should occupy at least 30% of the total new vehicles purchased by government departments.

Consumers purchasing such vehicles will be eligible for tax cuts that will be in effect from September 1, 2014 to December 31, 2017, the guideline stated.