Buick Velite 5

Buick Velite 5

Car manufacturers aren't happy with a Chinese policy that sets ambitious quotas for plug in vehicles (AKA New Energy Vehicle) from 2018, and urges some adjustments on aggressive timelines.

Ford Mondeo Energi for China

Ford Mondeo Energi for China

The new requirements for plug-in sales (as reflected by overall market share) are:

  • 8% in 2018
  • 10% in 2019
  • 12% in 2020
For those manufacturers that don't reach the targets, there are various penalties, including ultimately being banned from importing and producing non plug-ins.

In a letter to China's Ministry of Industry and Information Technology, auto manufacturers (almost all of them) says that the targets are "impossible", and as one might expect, would like them to be eased and/or delayed.

"At a minimum, the mandate needs to be delayed a year and include additional flexibilities."

The letter was signed by:

  • the American Automotive Policy Council
  • the European Automobile Manufacturers Association
  • the Japan Automobile Manufacturers Association
  • the Korea Automobile Manufacturers Association
Of the group, there is of course no Tesla in the pack, as the California EV leader is producing solely electric cars, and they would probably be more than happy to not share the Chinese market with other foreign OEMs.

In June, overall plug-in sales stood for some 2.7% market share - meaning an average 3X increase would be needed over the next 18 months for industry-wide compliance.  No small amount indeed.

Additional reported problems is the lack equal treatment between Chinese and foreign makers (as well as the lack of full subsidies, and a 25% import tax).  Although these issues are longer running, and effect both petrol and electric offerings.

source: Reuters