Predicting what exactly will be included as part of China’s 5-year plans can be an enjoyable experience, even if sometimes a bit “easy.” On that note, as many could probably have guessed, it’s looking increasingly likely that the country will begin pushing harder for electric vehicle adoption.
While the country has seen a rather notable increase in electric vehicle (EV) and plug-in hybrid (PHEV) sales in the past couple of years, some previously set goals haven’t actually been met, potentially setting the stage for some big actions to be taken by the country, according to a new report from Bloomberg Intelligence.
Bloomberg provides more information:
The ruling Communist Party, which will present the 13th Five-Year Plan at a plenum in October, may prioritize the building of more charging stations and improving the efficiency of batteries to address the shortage of places to recharge, high costs and limited driving range, according to a report by BI analysts Steve Man and Ji Shi.
China is supporting new-energy vehicles, with electric autos as the mainstay, as part of a strategy to reduce tailpipe emissions and its dependence on imported oil. The government has doled out subsidies to carmakers and battery suppliers while exempting EVs from purchase restrictions in cities. Even so, there are only about 220,000 EVs nationwide, or about 22% of the target for the end of 2015, according to BI analysis.
With more than 100 carmakers in China, small and struggling manufacturers may become targets for Internet companies seeking licenses to manufacture cars, according to the report. Having fewer local car companies also helps pool resources and enable them to better compete with global auto brands, which Chinese consumers overwhelmingly prefer, the analysts said in the report.
Considering the potential inherent in the Chinese market, this is certainly something to keep an eye on.