China To Skip 2018 Targets For EVs, But Leaves 10% Threshold In Place For 2019

SEP 28 2017 BY MARK KANE 9

Under the insistence of automakers stating they weren’t able to build the manufacturing infrastructure in time, the Chinese government has removed its requirement mandating 8% of annual vehicle sales to be offset with “New Energy Vehicle” (AKA plug-ins) credits in 2018 (several can be earn with 1 plug-in sales).

Sales of New Energy Vehicles in China – August 2017

The shift towards electrification, and the lowering of emissions, isn’t however endangered – as the remaining targets of 10% NEV credits in 2019 and 12% in 2020 is going nowhere.

As a result, the manufactures have the extra time that they said they required to physically build the NEVs in volume, but at the same time, didn’t get the quota easing they likely were really hoping for.

Now the transition will be even steeper for OEMs next year if they aren’t already prepared today for building New Energy Vehicles.

For some, it is clear that ‘more time’ was all that was needed to comply – as the 8% demand did not originally come with a lot of lead time.

At the same time, for others (like Honda) it is also clear they were using the difficult initial timing as a crutch to hopefully get the percentages knocked down in lieu of action or deeper investment.  Even now it appears that many of these OEMs really have put no solid plans in place to respond to the Chinese e-ultimatum.

Here is response from Ford, GM and Honda (via Reuters):

“We welcome the Chinese auto industry’s shift towards greater adoption of NEVs and will comply with relevant regulations presented by authorities,” Ford Motor Co said in a statement responding to the announcement.

General Motors Co said it would “strive to comply with the NEV mandatory requirements”, though it added “continued joint efforts by the government and companies are essential to build broad-based consumer acceptance for NEVs”.

“GM has sufficient capacity to manufacture NEVs in China,” it said in a statement.

Japan’s Honda Motor Co Ltd said it planned to launch an electric battery car in China next year and would “try to expand our lineup of new energy vehicles” to meet the quotas.”

source: Reuters

Categories: China

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9 Comments on "China To Skip 2018 Targets For EVs, But Leaves 10% Threshold In Place For 2019"

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They have a far more simple way to do this if the carmakers don’t want to meet the new Chinese standards, as they simply widely publish that nothing with a petroleum combustion engine purchased after {pick a date} will get a license plate.

Then, it’s time to scramble or die.

Thumbs up, Chinese. This is the only kind of language corporations understand. Stop polluting us.

Fossil fuel industry is not going to go away without a fight.

Sounds like they got their fight. I wouldn’t put money on them winning.

Still completely unreasonable and obviously nothing but green-washed protectionism. Creating mandates only a few years away in an industry where the NPD time is about 5 years. The difference in outrage about this and Korean battery maker pestering is very inconstant. Just because it accelerates the shift to EVs doesn’t make it less faux pas. After the Senkaku islands dispute and now the THAAD missile controversy it’s only a matter of time before China will either create or exploit an incident with the US or the EU so it’s population will boycott their products. I for one, am not looking forward to the time when China will be the foremost superpower.

Couldn’t be much worse than the present foremost superpower.

It is good they are skipping the 2017 requirement, since earlier this year the China gov’t sunk EV sales with policy blunders. I have no problem with them solving the problem they created.

“….mandating 8% of annual vehicle sales to be of the “New Energy” variety (AKA plug-ins)”

It’s NEV credits equal to 8% of sales, right? A long range BEV gets 5 credits. Only 2-3% of vehicle sales will actually be NEVs.

The mainstream media always gets this wrong, but I expect better from you guys.

Yes, that should be 8% worth of credits. Will adjust story to reflect that now – not sure what happened there, we have often referenced the system (as akin to California’s) before in the past (and just a couple days ago, lol). Apologies on that.