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China Considering Policies to Boost Auto Sales; Focus on Alternative Energies

China Daily. The government of China is considering policies to boost auto sales, including consumption-tax breaks and subsidies to automakers that develop vehicles powered by alternative energies, according to Chen Jianguo, deputy head of the industrial coordination department of the National Development and Reform Commission.

Chinese automakers are facing their toughest challenge in three years as demand is falling and profitability is plunging amid rising costs. The country’s auto sales fell in August and September as a 64 percent stock-market slump and the economic slowdown curbed demand.

The government held a meeting in Beijing on Saturday of more than 10 automakers to gather industry suggestions, Chen said. “It is possible the government may announce policies&rdquio; to help revive the industry, he added.

The government is also urging automakers to take advantage of a reshuffle in the global automobile industry and speed up development of vehicles using alternative energies, Chen said. China’s government will help automakers with technology and financial support to make progress in the area of electric cars, Chen added.

Separately, the government announced an approximately 4-trillion yuan (about US$586-billion) stimulus package over the next two years to finance programs in 10 major areas, such as low-income housing, rural infrastructure, water, electricity, transportation, the environment, technological innovation and rebuilding from several disasters.



The Government of China can and is known to take quick decisons. A major stimulus program could accellerate PHEVs/BEVs and batteries mass production. China's car and batteries industries could become extremely competitve in the near future.

There are very interesting business opportunities for countries and manufacturers like BYD who can mass produce and take a lead in affordable batteries and PHEVs/BEVs.

An American billionaire did not recently invest $250+ millions in BYD just for fun.


Ah, the efficiency of a dictatorship

Henry Gibson

A cheap weak, low power, plug-in-hybrid, electric car should be mandated. Lead batteries are cheap and powerfull enough. There is no need to get the best expensive lithium. Expensive ZEBRA batteries will give equal performance to Li at lower cost if you have the money. ..HG..

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