China preps California-style plan to promote EVs, hybrids
China is preparing a new plan to encourage automakers and consumers to use electric vehicles and hybrids, learning lessons from California's efforts to promote a similar switch, the chief of a major state-owned carmaker said Thursday.
The central government could implement such a policy in the first half of next year, said Xu Heyi, chairman of Beijing Automotive Group, parent of BAIC Motor Corp.
China has set fuel economy standards that grow increasingly aggressive through 2020 to relieve heavy air pollution, but it has yet to specify how such a plan will be enforced.
The new program to promote "new-energy" vehicles -- EVs and plug-in hybrids -- grants credits to automakers for selling such vehicles, which help them meet new and more stringent fuel economy rules.
"Relevant national departments are currently studying and drawing lessons from California's methods to encourage the use of new-energy cars" to reduce vehicle emissions, said Xu, who as leader of a major state-owned company is also a high-ranking Communist Party official.
There would be two plans, one for automakers and one for consumers, to promote green cars in China, Xu told reporters at a media event at its headquarters in Beijing.
Automakers would be given the most credits for making all-electric battery vehicles, fewer for plug-in hybrids and the fewest credits for traditional Prius-style hybrids.
Traditional gasoline-powered cars that do not meet the new fuel economy requirements would get negative points, he said.
Automakers that fail to meet the new fuel economy requirements could buy credits from overachieving companies to make up the difference.
Meanwhile, consumers would get credits redeemable for money based on the distance they drive in full electric mode, while drivers using gasoline would be required to pay an additional fee for the distance driven.
China has set fuel economy standards that grow increasingly aggressive through 2020 to relieve heavy air pollution, but it has yet to specify how such a plan will be enforced.
The new program to promote "new-energy" vehicles -- EVs and plug-in hybrids -- grants credits to automakers for selling such vehicles, which help them meet new and more stringent fuel economy rules.
"Relevant national departments are currently studying and drawing lessons from California's methods to encourage the use of new-energy cars" to reduce vehicle emissions, said Xu, who as leader of a major state-owned company is also a high-ranking Communist Party official.
There would be two plans, one for automakers and one for consumers, to promote green cars in China, Xu told reporters at a media event at its headquarters in Beijing.
Automakers would be given the most credits for making all-electric battery vehicles, fewer for plug-in hybrids and the fewest credits for traditional Prius-style hybrids.
Traditional gasoline-powered cars that do not meet the new fuel economy requirements would get negative points, he said.
Automakers that fail to meet the new fuel economy requirements could buy credits from overachieving companies to make up the difference.
Meanwhile, consumers would get credits redeemable for money based on the distance they drive in full electric mode, while drivers using gasoline would be required to pay an additional fee for the distance driven.
