China might Relax Their Quotas for Electric and Hybrid Vehicle Sales
21. March 2017We recently wrote about the quotas in China for electric and hybrid vehicles in our News Section. The importance and sales volumes for electrical cars in China have been rising over the last two years. In accordance with its new environmental consciousness, Beijing is planning to implement a rule which stipulates that a distinct part of the cars sold in China has to be equipped with an electric or hybrid motor. Beijing is now planning to relax this quota.
The Chinese Ministry of Industry and Information Technology initiated a legislative proposal in autumn last year that requires car manufacturers who sell cars in China, among those BMW, VW and Daimler, to collect credit points by shifting 8 percent of their sales to electric and hybrid vehicles in 2018. The quota would then increase to 10 percent the following year and 12 percent in 2020. Car manufacturers will incur penalties for not meeting the required targets.
China is one of the most important markets for the German automotive industry, so these newly announced quotas cause concern for the manufacturers. Currently Volkswagen is selling only a couple of hundred electrical vehicles to China. If the quotas are not met, production would need to be dramatically scaled back, or credit points need to be purchased to make up the difference.
Now it looks as if Beijing is about to loosen the legislative proposal. So far, there is no written statement regarding this issue.
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