China To Follow California’s ZEV Credit Program

AUG 25 2015 BY MARK KANE 5

Roewe e50

Roewe e50

A California-style scheme convincing manufacturers to introduce and produce models with higher fuel economy/low emission is being considered in China.

There is an idea to distribute credits in China, much like in California.

The highest number of credits would be available for all-electric cars, fewer for plug-in hybrids and the least for non-rechargable hybrids.

Credits will not be available for selling conventional cars, while worst fuel economy models will be fined with negative credits.

Separately, there is a second scheme being considered for consumers, which would get credits (redeemable for money) for driving many miles in all-electric mode. There could also be negative credits for gasoline cars in the form of fees for the distance driven. Well, China will need to monitor a lot of data to introduce this.

The Chinese market is already seeing strong growth of plug-ins. If the above plans are introduced, we expect to see another wave of New Energy Vehicle sales in China.

Source: Reuters

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5 Comments on "China To Follow California’s ZEV Credit Program"

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Oddly enough, China may be the one country to not bow to the Petroleum Industry and over-credit hydrogen vehicles.

Simple answer.

China have virtually no oil extraction industry. China have virtually no fulel cell industry.

Electrical battery now is business that is possible to bootstrap “quickly” inhouse. So Chine would get high tech, cleaner air, and weaker competitors all through one policy.

China has actually outlawed the “Type 4” pressure vessels used by the current handful of hydrogen cars. China will be the only place on earth that it must produce a EV, much like it did with both the first and second generation RAV4 EV for California.

I seriously doubt we will see hydrogen cars in China.

cool. 🙂

Well, I’m certainly in favor of anything that pushes the EV revolution forward.

But it seems odd for a country with central control by the government to resort to the rather inefficient method of letting auto manufacturers trade carbon credits to encourage EV production, when China’s central government could just mandate it.

The central government mandated that at least 30% of all government car purchases have to be alternative fuel vehicles; so why not just use another government mandate to control what cars can be sold on the market?