Reg­u­la­tion to cap sales of fos­sil-fuel cars, boost NEVs

Global Times - - Biz Overview -

China on Thurs­day took a sig­nif­i­cant step for­ward in phas­ing out fos­sil-fuel pas­sen­ger cars and boost­ing new-en­ergy ve­hi­cles (NEVs), is­su­ing a reg­u­la­tion that re­quires car­mak­ers to sell a min­i­mum num­ber of NEVs.

The Min­istry of In­dus­try and In­for­ma­tion Tech­nol­ogy (MIIT) of­fi­cially launched a so-called dual credit pro­gram that both put a cap on fos­sil-fuel con­sump­tion and im­posed min­i­mum sales for NEVs. The pro­gram will take ef­fect on April 1, 2018, the min­istry said in a doc­u­ment.

Car­mak­ers that pro­duce or im­port 30,000 ve­hi­cles or more a year are re­quired to grad­u­ally in­crease sales of NEVs start­ing in 2019, ac­cord­ing to the doc­u­ment. NEVs must ac­count for 10 per­cent of a com­pany’s to­tal sales in 2019 and 12 per­cent in 2020, it said. The MIIT will de­ter­mine new ra­tios for af­ter 2020.

The NEV credit sys­tem will be ap­plied to car­mak­ers that pro­duce or im­port less than 30,000 ve­hi­cles, but all car­mak­ers will be as­sessed on their fuel-econ­omy per­for­mance with re­la­tion to na­tional stan­dards.

Fuel-econ­omy cred­its can be used by the same com­pany in the fol­low­ing year or trans­ferred among re­lated com­pa­nies, while cred­its for NEVs could be traded freely, it said.

The move rep­re­sent the lat­est ef­fort by the Chi­nese govern­ment to boost the NEV sec­tor, which the coun­try con­sid­ers a strate­gic in­dus­try. It also takes China a step closer to phas­ing out tra­di­tional fuel cars.

China has of­fered heavy sub­si­dies for NEVs’ devel­op­ment. It has also in­di­cated that it is study­ing a timetable to stop the pro­duc­tion of fos­sil-fuel cars.

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