China Expected To Ease Electric Car Quotas


Sales of New Energy Vehicles in China – 2016

China’s torrid sales growth in the electric vehicle segment faced some hiccups in January and February thanks to some bureaucratic red tape that saw no plug-in eligible for subsidies for ~7 weeks while waiting on a new approved OEM/model list.

Now with things are getting just on track, a return to a bleaker plug-in future may lie ahead.

BYD plug-in electric car sales in China through December 2016

As Reuters reports:

“China may roll back electric car quotas as industry pushes back.” 

If followed through with, this is not-so-great news for electric car supporters, as China’s recent electric vehicle surge was seen as a kinda of ground zero for the global electric car boom.

While the rollback is significant, the minimum EV adoption levels are still quite high compared to almost all other countries.

Reuters adds:

“If adopted, proposed changes under discussion could see a target of new energy vehicles (NEV) making up 8 percent of sales next year pushed to 2019, two auto executives said.”

“The changes would lower targets from a draft policy released in September requiring 8 percent of automakers’ sales to be battery electric or plug-in hybrid vehicles by 2018, rising to 10 percent in 2019 and 12 percent in 2020.”

Despite smog issues that continue to plague several of China’s largest cities, the government seems open to the idea of moving backwards. Even worse perhaps is that the Chinese automakers that had become so invested in green vehicles could pay the price, meaning that automakers such as BYD who bet heavily on the green car future could face unnecessary financial hardships.

All this comes at a time when we should be pushing forward more so now than ever.

Source: Reuters

Categories: China


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6 Comments on "China Expected To Ease Electric Car Quotas"

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10% of 20,000,000+ whether it be next yeat or the year after is a sh1tload.

That’s right. I am an EV enthusiast of the highest degree, but putting out unrealistic goals doesn’t help the cause. China’s has only moved the bar for one year to a more realistic number. Achieving 8% market share in 2018, 10% in 2019, and 12% in 2020 is aggressive. Moving one the bar one year is still fairly aggressive to me.

I agree. 8% in 2019 is still awesome. Mr. Loveday’s describing this as moving backwards is kind of silly.

Unrealistic? Hardly. The companies need to do more than that in the EU so they should be able to do it in China too.
But if they move the 8% goal by a year then they should increase the coming years instead. Maybe 11% and 16% instead of 10% and 12%.

If it were BEVs only then it might have been too hard. But we are talking all plugins.

As point of reference California New Car Dealers Association ( shows plug ins at 3.5% of CA new car sales and Hybrids at 4.7% as of Feb 2017.

1.8% in 2016 to 8% in 2018 is >100% annual growth. Ramping a sizable industry at that rate can cause big problems.