New Energy Vehicle Market in China to Benefit from New Policies

Published By : 01 Oct 2015 | Published By : QYRESEARCH

China is leading the automobile industry with its massive production. China has emerged as the world’s fastest economy, and though recently it experienced a slowdown in its growth, the China market is projected to still experience substantial growth in the coming few years. Furthermore, the automobile market in China still continues to show good profits, fuelling the China’s economic growth.

In the China automobile industry, the demand for new energy vehicles (NEVs) is high. In addition to this, the demand for other innovative vehicles such as hybrid vehicles is also substantial in this industry. It is projected that the number of electric buses in China will grow substantially in the coming few years. The new energy vehicle market in China is expected to grow at a healthy rate in the foreseeable future. A string of new favorable policies.

The State Council in China’s cabinet requested local authorities to lift purchase restriction and get rid of the traffic controls for new energy vehicles and maintain retaining regulations for cars that use fossil fuels. This is expected to stimulate sales and development of eco-friendly vehicles.

China is expected to support local government, bus companies, and public institutions in order to use more new energy vehicles as per a statement issued after an executive meeting with State Council chaired by Premier Li Keqiang.

Nevertheless, NEVs have received years of support and are still a reluctant choice for many car buyers due to their exorbitant prices along with inconvenient charging. Furthermore, car makers are still experiencing high production costs and the technologies in the China NEV sector are not yet mature.

The vice president of China Association of Automobile Manufacturers (CAAM), Mr. Dong Yang advised many authorities to expand their favorable measures in order to let more buyers experience this benefit. This includes plugged in hybrid cars and promoting low emission cars for controlling air pollution.

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