The policies of Government of China toward electric cars are turning out to be more selective lately. This signals an extra effort for higher performing vehicles and possibly accelerating development of the industry, noted the Wood Mackenzie’s expert.
This is not expected to slow down the drive of the industry, even if there have been claims that state subsidies for EVs (electric vehicles) could be slashed soon, claimed Yujiao Lei, analyst at Wood Mackenzie, to the media this week in an interview.
She claimed: “That could possibly slow down little, but not by a huge amount since what we are witnessing in late times is that while pervious rules are endorsing all the EVs, lately, policies have turned out to be choosier.”
“So, like the newest subsidies of this year, it in fact have a preference for higher performing cars in comparison to the lower end EVs,” Lei claimed. She further claimed that the scheme of dual subsidy planned to begin later in 2018, will in fact have a preference for higher performing EVs too, and possibly pace up the market.
The scheme of dual credit for EVs, planned to be executed from April 2018, is a credit-supported policy that penalizes or rewards car manufacturers on the basis of driving range and fuel consumption. Credits can be sold or bought within the industry to meet the targets of the government.
“Because of the scheme, China has witnessed an elevation in partnership trends and investment announcements, which all display a positive sign that firms are beginning to make an effort to design higher performing cars,” claimed the analyst.
Efforts are in progress to attract drivers to purchase electric cars, Lei noticed. “We are witnessing increasing number of cities beginning to have driving limitations or some guidelines regarding the EV,” she added.