The Chinese love electric cars because of the benefits

20 July 2017

Beijing it stimulates their citizens incentives on electric cars and hybrids

Beijing encourages its citizens the benefits of electric hybrids, foreign producers threatens quotas

Sales of electric vehicles (EV) and rechargeable (from the mains) hybrids (PHEV) on the Chinese market has increased in June 33% to the same month in 2016 year and amounted to 59 000 units, primarily for through generous state subsidies to buyers of such vehicles.

So the supply of electric cars are growing for the third month in a row after Beijing returned earlier revoked privileges, said the China Association of automobile manufacturers.&the Brands sold in June 48, 000 units of electric vehicles and 11 000 units of the hybrids.

For the first half EV sales rose to 195 000 units or to 14% compared to the same period last year.  In the first half in China has sold 160 000 units of battery electric vehicles and 35 000 rechargeable hybrids. Incidentally, the previous 2016 in China were sold 329 000 units of electric vehicles and hybrids, so that the current 2017 probably will put a new record.

And yet, despite the recovery in demand, sales of electric cars amounted to less than 1.7% of the total sales of new cars in China the first six months of this years (11 million 253 thousand, growth on 1,6%).

Most popular China electric car BYD e6 400 (with a range of 400 km)

According to previously published in this year, government plan for the domestic automotive industry, the annual supply of electric vehicles, expected to be 6.7% total sales of cars in China 2020 and to 2025 their share will increase to 20% of the entire automotive market. For the achievement of such ambitious goals Beijing plans to impose strict quotas on the sale of electric vehicles already in 2018 years (according to recent reports by the intervention of German Chancellor Merkel, their introduction could delay up to 2019 year, least German brands and accordingly, their joint venture with Chinese manufacturers), to encourage automakers to dramatically increase as ruler, and sales of electric vehicles.

The less the quota apply to all brands, including premium. So 2018 years, the quota for the mandatory sale of electric vehicles should not less than 8% of the sales of a particular brand, 2016 – 10%, and with 2020 – 12%. According to the German manufacturers (e.g. BMW) such standards are extremely tight does not even give the minimum time for the development and the promotion of appropriate models.