Manufacturing News

Beijing relaxes controls on EV manufacturing

The Chinese government plans to allow domestic companies with limited experience in auto manufacturing to produce electric vehicles.

Beijing has only permitted automakers to build EVs and plug-in hybrid vehicles until now. That has prevented some upstart companies that have developed EVs from selling any of their vehicles.

The new rules would allow these companies to sell EVs and plug-in hybrids as long as they have at least three years of EV design experience, according to a document the State Council, China's cabinet, released last week.

But the upstarts won't be allowed to produce vehicles powered by gasoline engines, diesel engines or fuel cells.

The State Council has posted its new rules -- dubbed Guidelines on Accelerating the Promotion and Application of New Energy Vehicles -- on its website for public consultation.

To win government approval for production, these companies must build at least 15 prototypes. The EVs must have a minimum range of 100 km on one charge, with a top speed of at least 100 km per hour.

The vehicles must have a warranty of 5 years or 100,000 km for electric motors, batteries and electric control devices, according to the guidelines.

Aided by generous government subsidies, approximately 22,200 electric passenger vehicles were produced in the first ten months of this year, a sevenfold increase from a year earlier. Production of electric commercial vehicles jumped 133 percent to 5,723 units during the period.

While production and sales are up sharply, China's auto industry remains well short of goals announced by the central government for green vehicles. Beijing wants to have 5 million EVs and plug-ins on the road by 2020.

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