China revs up for a new energy vehicle boom
Sales of new energy vehicles or NEVs – that includes electric, plug-in hybrid and hydrogen-powered vehicles - are forecast to rise to 20% of overall new car sales in China by 2025 - a significant leap from the current 5%.
China’s State Council said the NEV industry in China - the world’s biggest auto market - has improved its technology and competitiveness, in a policy paper as part of the release of the country’s 14th five-year plan.
It also said the Chinese government will improve the green car quota system to guide automakers to make more environmentally friendly vehicles after it ends NEV subsidies in two years, and boost NEV sales for public uses such as bus and trucks.
The production of electric vehicles is expanding rapidly in China.
In January, Elon Musk launched Tesla’s Model Y electric sports utility vehicle at the company’s new Shanghai factory.
"We tend to continue making significant investment and increasing investment in China.''
Tesla said it would start exporting China-made Model 3 cars to more than 10 European countries this month, joining a growing number of automakers using China as an export hub for electric vehicles.
In May, Volkswagen said it planned to invest $2.33 billion in two separate Chinese electric vehicle players.
And in August, Chinese electric vehicle maker Xpeng increased the size of its U.S. IPO by more than a third to about $1.5 billion.
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