China upholds electrified vehicle quotas despite industry protests
China upheld strict sales quotas for electrified vehicles in its latest draft regulation, ignoring concessions agreed to this month by Chinese Premier Li Keqiang and German Chancellor Angela Merkel.
The draft, posted on the website of the Legislative Affairs Office for China's cabinet, maintains that automakers must sell enough electric or plug-in hybrid vehicles to generate "credits" equivalent to 8 percent of sales by 2018, 10 percent by 2019 and 12 percent by 2020.
The number of credits per car is based on the level of electrification.
Many auto executives have complained that the targets are too ambitious.
Merkel and Li did not give specifics on June 1 when they announced that China would make concessions. But industry sources told Reuters the two leaders had agreed to delay the 8 percent requirement to 2019 and allow automakers that missed the quota in early years to make up for it later.
The latest draft by China's Ministry of Industry and Information Technology, issued Tuesday and open for public comment until June 27, is largely unchanged from one issued in September, with no change to the timings.
Dominik Declercq, China representative for the European Automobile Manufacturers Association, said the new draft indicated China had not changed its stance on the policy.
"That's what it looks like: no compromise, no concession," Declercq told Reuters.
German Ambassador to China Michael Clauss said: "It seems that the political leadership has understood that this is a problem but there seems to be a disconnect between them and the working level at MIIT."
China has been pushing to get more electric vehicles on its roads as soon as possible to fight urban air pollution. But automakers and industry groups have said the targets are too tough, while German policymakers say they fear Beijing wants to help domestic carmakers overtake global rivals in developing electric vehicles.
The quotas would be in addition to stricter fuel economy requirements that are set to become among the world's toughest by 2020.
The quota proposals had met with requests by carmakers such as Volkswagen AG to be given more time to meet them. However, VW has said it is prepared to comply with the 2018 quota if the government insists.
The number of credits per car is based on the level of electrification.
Many auto executives have complained that the targets are too ambitious.
Merkel and Li did not give specifics on June 1 when they announced that China would make concessions. But industry sources told Reuters the two leaders had agreed to delay the 8 percent requirement to 2019 and allow automakers that missed the quota in early years to make up for it later.
The latest draft by China's Ministry of Industry and Information Technology, issued Tuesday and open for public comment until June 27, is largely unchanged from one issued in September, with no change to the timings.
Dominik Declercq, China representative for the European Automobile Manufacturers Association, said the new draft indicated China had not changed its stance on the policy.
"That's what it looks like: no compromise, no concession," Declercq told Reuters.
German Ambassador to China Michael Clauss said: "It seems that the political leadership has understood that this is a problem but there seems to be a disconnect between them and the working level at MIIT."
China has been pushing to get more electric vehicles on its roads as soon as possible to fight urban air pollution. But automakers and industry groups have said the targets are too tough, while German policymakers say they fear Beijing wants to help domestic carmakers overtake global rivals in developing electric vehicles.
The quotas would be in addition to stricter fuel economy requirements that are set to become among the world's toughest by 2020.
The quota proposals had met with requests by carmakers such as Volkswagen AG to be given more time to meet them. However, VW has said it is prepared to comply with the 2018 quota if the government insists.
