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China Facilitates New Energy Vehicle Applications

On Sep 16th, the Chinese Ministry of Transport (MOT) issued the “Draft Opinions on Accelerating the Promotion and Application of New Energy Vehicles” for public comments until Oct 10th.

The Draft set a goal that by the 2020, the number of new energy vehicles applied to city buses, taxis and the logistics field should reach 300,000. For all-electric vehicles and fuel vehicles, the operational efficiency of the former should not be less than 90% compared with the latter, while the energy-saving rating should be 50% or more. The overall contribution of new energy vehicles should contribute at least 20% to a city’s overall energy conservation and emission reduction.

To promote the application of new energy vehicles, MOI proposed 3 favorable policies

  1. New energy vehicles will be the first option for public buses, taxis and logistics distribution vehicles.

  2. New energy vehicles can be exempted from traffic controls and car-purchase restrictions with the support from local governments.

  3. New energy taxis, cars for rent and logistic distribution vehicles can enjoy loosened requirements on market access.

The document also mentioned quality requirements for the selection of new energy buses and taxis by referring industrial or national standards like JT/T 888-2014, GB/T 28382-2012 and GB 8624-2012. So far, China has 75 standards concerning electric vehicles.

While the MOI leads the development of these policies, their implementation largely depends on local governments. According to a previous opinion issued by the State Council, supporting facilities and services are essential elements to promote new energy cars. Private investment in this sector is being encouraged particularly investment in charging infrastructure construction and operation, car renting, battery renting and recycling, etc.

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