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China dangles new carrots to stimulate green car use
By Xiao Jin |
November 21, 2011, Monday
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Print Edition
Print Edition
CHINA is mulling plans to lift restrictions on new energy vehicles, including offering free license plates in an attempt to help further popularize use of green cars.
According to a statement issued by the Ministry of Science and Technology, the Ministry of Finance, the Ministry of Industry and Information Technology and the National Development and Reform Commission, new-energy cars will be exempt from current license plate and traffic restrictions in some major cities.
The central government has selected 25 cities, including Beijing, Shanghai, Guangzhou and Dalian, for a new green-car pilot project aimed at encouraging the use of environmentally friendly vehicles by government departments and public transportation operators.
The top state administrations have called on participating cities to reduce parking and electricity costs for new energy vehicles and to map out infrastructure projects setting up electric charging posts in parking lots.
By the end of this year, the State Grid has pledged to build 75 charging stations and over 6,000 charging posts. The number of stations is to surge to 400 by 2016 and to 10,000 by 2020.
"They would be a positive sign to the market and a first important step to promoting new energy vehicles, mainly through cost-related incentives," said Klaus Paur, managing director of the automotive division at Synovate Motoresearch in Shanghai.
"However, each city still has to massively invest in battery-recharging posts and in efforts to improve traffic management," he said.
New energy vehicles
Development and marketing of new-energy vehicles are a top priority for China's auto industry and also a prominent strategy in China's 12th Five-year Plan (2011-15). That ambition comes amid a sluggish world economy.
China is working out financial and technology measures for research and development of new-energy vehicles. Many automakers believed China has the potential to become the world's largest green-car market.
Although auto companies are pushing ahead with clean vehicle development, sales of new-energy vehicles in China are still limited because customers are deterred by the high cost and by safety questions surrounding advanced battery technology.
Mass consumption of electric vehicles also depends on infrastructure, which is still underdeveloped and suffers from a lack of unified standards.
There are more than seven new energy vehicles available on the market today, including GM Buick's LaCrosse hybrid, BYD F3DM dual-mode plug-in hybrid, Toyota Camry hybrid and Honda Civic hybrid.
Volkswagen earlier said it plans to locally manufacture electric vehicles in China as early as 2013, leading to aggregate sale forecasts of 10,000 units between 2014 and 2018.
Other carmakers, including Daimler AG, Nissan Motor and General Motors, have all committed to electric cars in partnership with local automakers in China.
The country aims to have 1 million electric-powered vehicles on the streets by 2015.
According to a statement issued by the Ministry of Science and Technology, the Ministry of Finance, the Ministry of Industry and Information Technology and the National Development and Reform Commission, new-energy cars will be exempt from current license plate and traffic restrictions in some major cities.
The central government has selected 25 cities, including Beijing, Shanghai, Guangzhou and Dalian, for a new green-car pilot project aimed at encouraging the use of environmentally friendly vehicles by government departments and public transportation operators.
The top state administrations have called on participating cities to reduce parking and electricity costs for new energy vehicles and to map out infrastructure projects setting up electric charging posts in parking lots.
By the end of this year, the State Grid has pledged to build 75 charging stations and over 6,000 charging posts. The number of stations is to surge to 400 by 2016 and to 10,000 by 2020.
"They would be a positive sign to the market and a first important step to promoting new energy vehicles, mainly through cost-related incentives," said Klaus Paur, managing director of the automotive division at Synovate Motoresearch in Shanghai.
"However, each city still has to massively invest in battery-recharging posts and in efforts to improve traffic management," he said.
New energy vehicles
Development and marketing of new-energy vehicles are a top priority for China's auto industry and also a prominent strategy in China's 12th Five-year Plan (2011-15). That ambition comes amid a sluggish world economy.
China is working out financial and technology measures for research and development of new-energy vehicles. Many automakers believed China has the potential to become the world's largest green-car market.
Although auto companies are pushing ahead with clean vehicle development, sales of new-energy vehicles in China are still limited because customers are deterred by the high cost and by safety questions surrounding advanced battery technology.
Mass consumption of electric vehicles also depends on infrastructure, which is still underdeveloped and suffers from a lack of unified standards.
There are more than seven new energy vehicles available on the market today, including GM Buick's LaCrosse hybrid, BYD F3DM dual-mode plug-in hybrid, Toyota Camry hybrid and Honda Civic hybrid.
Volkswagen earlier said it plans to locally manufacture electric vehicles in China as early as 2013, leading to aggregate sale forecasts of 10,000 units between 2014 and 2018.
Other carmakers, including Daimler AG, Nissan Motor and General Motors, have all committed to electric cars in partnership with local automakers in China.
The country aims to have 1 million electric-powered vehicles on the streets by 2015.
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