China may step up push for EVs in new 5-year plan, report says
China may increase its emphasis on achieving targets for adoption of electric vehicles in its next five-year plan and continue to encourage consolidation among local carmakers, according to a Bloomberg Intelligence report.
The ruling Communist Party, which will present the 13th Five-Year Plan at a plenum in October, may call for more charging stations and better batteries to fix EVs' limited range and high cost, concludes a report by Bloomberg analysts Steve Man and Ji Shi.
China is promoting electric cars and plug-in hybrids to reduce tailpipe emissions. The government has doled out subsidies to carmakers and battery suppliers, and has exempted EVs from purchase restrictions in major cities.
Even so, there are only 220,000 EVs nationwide, or about 22 percent of the target for the end of 2015.
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 enables them to better compete with global auto brands, which Chinese consumers overwhelmingly prefer, the analysts said in the report.
On Tuesday, China's State Council reiterated its support for EVs and warned local governments not to restrict the purchase or use of EVs. The central government also warned local authorities that it will cut fuel and operational subsidies if they don't adopt electric buses for public transportation.
China is promoting electric cars and plug-in hybrids to reduce tailpipe emissions. The government has doled out subsidies to carmakers and battery suppliers, and has exempted EVs from purchase restrictions in major cities.
Even so, there are only 220,000 EVs nationwide, or about 22 percent of the target for the end of 2015.
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 enables them to better compete with global auto brands, which Chinese consumers overwhelmingly prefer, the analysts said in the report.
On Tuesday, China's State Council reiterated its support for EVs and warned local governments not to restrict the purchase or use of EVs. The central government also warned local authorities that it will cut fuel and operational subsidies if they don't adopt electric buses for public transportation.
