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October 18, 2010

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Home » Business » Auto

Annual output of electric cars to top 1m

CHINA'S annual production capacity of electric motor vehicles will reach 1 million units by 2020, a senior official forecast on Saturday.

As the world's largest auto market, new energy vehicles are key to the development of China's auto industry, Minister of Science and Technology Wan Gang said.

Wan said automobile exhaust emissions accounted for 70 percent of air pollution in big cities of China.

While extolling new energy cars, Wan said promotion of public transport would also help ease the problems caused by expanding car ownership in China. Using new-energy vehicles should also be top priority for public transport firms, he said.

Twenty-five Chinese cities have jointed a pilot program co-sponsored in 2009 by his ministry, the Ministry of Finance, the National Development and Reform Commission and the Ministry of Industry and Information to promote energy-efficient and new-energy vehicles. The project aimed to replace public transport vehicles with electric ones to develop the electric vehicle industry, Wan said.

The industry has attracted a total of 8.5 billion yuan (US$1.28 billion) of funds since the debut of the project in 2009, he said.

China became the world's largest auto market as Chinese producers sold 13.6 million vehicles last year, and the market continued to grow rapidly in the first half of 2010 with sales surging almost 48 percent year on year to 9.02 million units.

The government announced in June that it would subsidize the purchase of green vehicles in an effort to reduce vehicle emissions. Buyers of pure electric vehicles in pilot cities such as Shanghai, Changchun, Shenzhen, Hangzhou and Hefei are entitled to subsidies of up to 60,000 yuan.





 

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