Automakers Request China To Ease Impossible Electric Car Policies – ZMR Blog
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Automakers Request China To Ease Impossible Electric Car Policies

Worldwide auto-manufacturers have advised China to soften and delay planned quotas for trade of hybrid and electric cars. They advised this by saying that its offers will be unfeasible to meet and might rigorously disturb their companies, as per a letter seen by the media.

The letter, written to the Head of Ministry of Information Technology and Industry of China, is the most unified pushback yet in opposition to the determined targets from the industry for supposed new energy cars in the biggest auto market of the world. Eager to battle air pollution, China is aiming to set targets for plug-in hybrid and electric cars to make up minimum 1/5th of Chinese auto trades by the end of 2025, with a spread out network of quotas commencing in 2018.


Beijing also views the policy as a method to assist the local car industry to contend with foreign competitors. These rivals carry decades of experience in internal combustion engines. The stern new policies plus aimed ruthless penalties for non-compliance, such as the termination of licenses to trade non- electric cars in the country, has the latent to cause much loss for most of the automakers in the industry. “This will strike the market pretty solid, particularly renownedfirms,” claimed Senior Manager at the Innovation Center for Transportation and Energy, Liping Kang.

Even though Li Keqiang, the Chinese Premier, and Angela Merkel, the German Chancellor,decidedprevious month that allowanceswill be made, the ministry afterwardrolled out draft regulations keeping the strict trade quotas. “The offered policies’ ambitious enforcement information is impossible to complete,” the letter from European, the U.S., Korean, and Japanese auto market companies said. “At least, the mandatory requirements should be postponedfor a year and should comprise extra flexibilities.” The ministry refused to comment.

The targets of the new law demand that companies trading plug-in hybrid or electric cars should make credits equal to 12% by the end of 2020, 10% by end of 2019, and 8% of entire trade by end of 2018. The auto industry companies also requested for China to re-evaluate some of the punishments for not attaining the quotas, such as plans to prohibit automakers from producing and importing non-new energy cars in total. They also called for one and the same treatment of foreign and Chinese makers. Presently, overseasautomakers are barred from obtaining full financial support for new energy batteries and vehicles, leaving makers such as Tesla at a drawback.

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