China Intends To Ease Electric Car Quotas

3 months ago by Mark Kane 8

Sales of New Energy Vehicles in China – 2016

While we never thought it was possible to be too aggressive with legislating EV adoption, China may have done just that.

Specifically, the Chinese requirements of 8% of light vehicles produced in China to be New Energy Vehicles (all-electric or plug-in hybrids) for 2018 has encountered some resistance.

While very commendable, the plan seems to be too ambitious for the realm of possibilities for local automakers, especially considering the quotas continue to move up every year – to 10% in 2019, and 12% in 2020.  That is a lot of cars, and a lot of production infrastructure to be implemented in a very short time.

BMW 530e iPerformance charging

According to Handelsblatt, Chancellor Angela Merkel recently talked with Chinese Premier Li Keqiang about the issue in a telephone conversation. Germany even send high-level delegation to Beijing “for talks on a compromise“.

For German carmakers, the requirements are apparently too difficult at this stage of the market. Chinese manufacturers also seems to be dubious.

“German automakers complained the quotas would put them at a competitive disadvantage in China because they couldn’t meet the targets so quickly. The Chinese automobile industry association CAAM had also warned Beijing that some Chinese automakers couldn’t meet the quotas that fast.”

As a result, China has decided to relax the quotas in some manner, which would be smart if NEVs sales continue to decrease.  While the future percentages for plug-in cars sales are not yet known, the 2018 targets are now likely to be delayed until 2019.

source: Handelsblatt

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8 responses to "China Intends To Ease Electric Car Quotas"

  1. Mil says:

    To be fair, if any country can do it, it would be China. The rate of adoption seems to be quicker than nearly all other countries of the world.

  2. ffbj says:

    When the Chinese central committee says jump others say how high, though a bird with clipped wings can’t fly no matter how many times or how hard you toss it into the air.

    1. Assaf says:

      Yeah, because nothing says “clipped wings, can’t fly” more loudly than 250k new electric buses on the road in 2 years.

      Wow, this post and its thread are becoming a much-needed trail of laughs.

      1. ffbj says:

        Still a very small percentage, and the point of the article was they were backing away from over zealous attempts to just simply mandate evs into market share.

        It will happen just not at the rate the central planning wants it too.

  3. Assaf says:

    Hahaha, the piddly poor Germans can’t do it, because…. look, look, a bird!

    Daimler produces diddly-squat electric buses, while the rich, fat Chinese made 115k e-buses in 2015 and 135k last year.

    Hey Germany, why won’t you ask for a bailout in order to help you meet these “crazy” Chinese standards? Oh, wait 😉

  4. Carl Anton Stenling says:

    Here in Oslo, Norway the EV/PHEV sales is currently about 50 %.
    Should not be difficult for China to reach 8 %. The trick is to tax the ICE alternatives.

    1. FrankfurterBub says:

      Please, do not even think of doing ANY comparison between China and Norway. Just don’t.

      If you really wanna go there, start with the population (5 to 1400 millions), etc.

      1. Jason says:

        Carl is actually right, though. Increase the cost of fuel, increase the cost of ICE vehicles, doesn’t have to be by much, but it incentivise purchase of EV’s.

        It’s not like this has not been on the agenda for a number of years. If Germany manufacturers have not been taking it seriously, tough on them. If Tesla can raise as much as they have for tooling up a new vehicle, then Germany certainly should be able to.

        I wonder what is really behind this decision? Maybe China is running out of capital? Do they hear that Trump is going to reduce emissions standards, so now there is nothing to prove? Sorry I’m no expert, but it does seem odd. China has some of the worst pollution and population health, so reducing these targets doesn’t make sense on that front. It’s just a target, if manufacturers can’t meet demand, or the demand is not there, then the target is not met, doesn’t mean you have to lower it.

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