Published Date : Jan 28, 2016
Auto manufacturers in China had, in the past, been unable to acquire the required infrastructure to incorporate electric vehicle technology in public transport as well as commercial vehicles and this adversely affected the production of hybrid and electric vehicles in the country. In addition to that, there were just handful vendors who were legal and qualified to provide electric batteries to the automotive sector.
Trend of New Energy Vehicles Creeps into China’s Public Transportation System
Over the years, however, China has been greatly focused on curbing air pollution and using electric vehicles to control and reduce the nation’s reliance on fossil fuels and minimize the environmental challenges that arise from their use. This factor has largely enabled the rising adoption of new energy vehicles in China, a trend that has now crept into the public transportation system such as buses and taxis, and even commercial cars. By greatly reducing the nation’s dependence on imported oil and gas, new energy vehicles have helped China achieve industry leadership and possess immense potential for growth.
Rising Adoption on Electric Vehicles is One of China’s Greatest Strengths
The growing adoption of plug-in hybrids and electric vehicles in public fleets is considered to be one of China’s greatest strengths and this has definitely put the electric vehicle industry of the country on the road to success. What is most needed at this time is improved collaboration and coordination among suppliers, automakers, and the government. According to China’s Ministry of Transport, by 2020, the country is estimated to have 300,000 new energy vehicles operational in urban public transport and urban logistics systems. In the next four years, 100,000 new energy vehicles as taxis and 200,000 new energy vehicles as public buses will become operational in China. Thanks to favorable government initiatives and incentives and stringent fuel standards, the new energy vehicle market in China will witness rapid growth in the coming years.