China increases EV incentives

JAN

2013

Renault-Nissan Alliance Team
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China increases EV incentives

China’s love affair with the car began only recently, but the passion is all enveloping. China is now the world’s biggest market for new cars with some 18 million sold in 2012. That’s around 3.5 million more than the USA.

But this huge explosion in car ownership has meant an equally rapid rise in airborne pollution. To counter this, the Chinese authorities are promoting the benefits of zero emission mobility by increasing incentives available to buyers of electric vehicles.

So keen are the authorities to reduce emissions that the EV incentives are substantial. China’s central government already offers EV buyers a rebate of up to 60,000 Yuan (around €7,350 –$9,640) but now six municipalities, including Shanghai, are ready to add a further 40,000 Yuan (€4,900 –$6,430) to the discount: that’s a total of about €12,250 ($16,000) on each new EV. Smaller discounts are available to buyers of plug-in hybrid cars.

To cope with the flood of new car sales Shanghai has been limiting the issue of new licence plates via auctions. Buyers of EVs, however, are entitled to licence plates free of charge.

The move is part of China’s plan to have 500,000 ‘new-energy’ vehicles on the roads by 2015… and more than 5 million by 2020.