Green vehicles, including fuel-cell cars, petroleum-electric hybrids, and pure electric vehicles, will make one by 2025. This is according to the development project known as the New Energy Vehicles (NEVs). These vehicles are expected to be developed between 2021 and 2035. A report by Ken Lee said that the Chinese Government is doing all it can to promote electric vehicle sales. Some government measures include tax concession on electric vehicles, reduction cost on EV usage, and public purchases. He added that China expects sales to grow by 36% between 2021 and 2025.
Provincial authorities and the central Government will develop policies that will attract buyers to get rid of their petrol-guzzlers and embrace electric vehicles. Battery makers and manufacturers will get incentives to enable them to invest more. Consumers will also get cash subsidies to encourage them to purchase electric cars. The Government will give out money that will help to build charging stations throughout the country. The availability of charging stations will also encourage buyers to switch to EVs. Local authorities are offering buyers’ new number plates to entice them to convert to electrification. The Government has released over 300 billion cash subsidies since 2009 and a 10% tax exemption for two years till 2022.
Last year, China’s NEV sales increased by 5.1%, making it to 1.06 million units. This year, NEV sales decreased by 19.3%, resulting in total sales of 601,000 units. The decrease was highly contributed by Covid-19 lockdowns and quarantines, which disrupted electric vehicle manufacturing and distribution, mostly in February and March. From there, China moved on after the lockdown, and many manufacturing factories have resumed their operations almost fully. This year in September, over 138,000 units were sold. This is a clear indication that the market is expected to be even better by 2021. This is according to a report released by the China Association of Automobiles Manufacturers (CAAM).
The MADE IN CHINA plan has enticed over 500 companies to invest billions of dollars in drafting, developing, and gathering EVs. The primary question is who will manufacture the best electric vehicle in China. According to Brian Gu, an investment banker said that market success would solely depend on consumer price sensitivity. This is due to the fact that many new car buyers are sensitive to price and brand. Therefore, NEVs must ensure they offer buyers value for their money.https://minernews.io/