China is expected to roll out policies in support of electric and hybrid cars later this year. Authorities hope this will boost their hold on the market and help crackdown on air pollution in cities.
To push buyers towards green travel, China will continue to waiver purchase taxes on new energy vehicles (NEVs) between 2018 and 2020. China will also support local government purchasing of NEVs to create a fairer market.
New loan policies for Chinese banks will allow potential NEV buyers to borrow up to 85% of the car’s cost from banks, which authorities hope will give them the push to go green. Loans for NEV purchasing were previously at 80%.
China also seeks to implement a clearer standardised industry for NEVs and to regulate battery recycling to reduce wastage.
Some delegates at the annual Chinese meeting of parliament argued that China’s varied support of NEV production in different regions will harm the nation’s NEV growth in the long-term.
Anhui delegates at the meeting told Reuters the disparity would cause “low-quality and redundant production and inefficient, wasteful investment”.
“It also severely reduces consumer choice, fragments the market, inhibits innovation and deviates from the state’s original intentions to develop NEVs.”
Executives said for China to improve, they needed to create a greater incentive for green travel such as improving NEV performance.
They also hope to see NEVs becoming more convenient in daily life by pushing technology to allow for expanded car battery life and faster recharging speeds. Making battery recharging stations as available as petrol stations was another main focus.
Executives further pushed for China to implement policies that allow NEV better road access, which would give petrol car users the incentive to make the switch.
China has fast become the world’s top seller of green vehicles, with over half of the world’s NEV sales belonging to them last year. Their new policies are an effort to keep a firm foot in the growing NEV industry.