China targeting 5M electric and plug-in hybrid vehicles by 2020

19 April 2012

China’s State Council will take steps to accelerate the promotion of pure electric vehicles and plug-in hybrids, and popularize non-plug-in hybrid vehicles and more efficient internal combustion engine vehicles. The State Council is the highest executive organ of State power in China, as well as the highest organ of State administration.

The cultivation and development of the new energy and more efficient conventional vehicles will ease pressure on energy and the environment, promote the transformation and upgrading of the automotive industry, and foster new economic growth, according to the Council.

The State Council is targeting 500,000 plug-in vehicles by 2015, jumping up to 5 million by 2020. The government is also targeting a reduction in average fuel consumption of passenger cars from 6.9 L/100 km (34 mpg US) in 2015 to 5.0 L/100 km (47 mpg US) by 2020.

In a statement, the State Council outlined four primary steps to achieve its goals:

1. Technology. Establishing an R&D system to produce breakthroughs in core technologies, including batteries.

2. Popularization. Steps to accelerate the popularization will include broadening pilot demonstrations as well as subsidies to support the private purchase of new energy vehicles.

3. Infrastructure. China will build public fast charge facilities as well as develop battery recycling.

4. Tax and fiscal policy. Improvements to tax and fiscal policies are intended to create a conducive market environment.

The State Council stressed that the development of energy-saving and new energy automotive industry must avoid blind investment and redundant construction.