China aims for top place in new-fuel vehicles… Oh the irony!

Were you one of many readers shocked by my previous post –

Live Animals Being Sold as Keyrings in China …? ?

If so, you may see the irony in today’s offering. I guess China is as least china; pity the left hand does not know what the right is doing!

China will launch a new-energy vehicle development plan to make the country a global leader in energy conservation and new-fuel autos over the coming 10 years, powered by an initial package of government funding as high as 100 billion yuan.

The Beijing-based China Daily reported on Friday that the long-expected roadmap for vehicles, to be powered by non-fossil fuel resources, has been jointly drafted by the Ministry of Industry and Information Technology (MIIT), the Ministry of Science and Technology, the Ministry of Finance and the National Development and Reform Commission.

The report quoted So Bo, a deputy minister of MIIT, said the plan has been submitted to the State Council, which Premier Wen Jiabao heads, for final discussion and approval. The central government in Beijing is widely expected to bestow incentives for customers to buy electric cars, and other vehicles powered by new energies.

The draft plan has a specific focus on hybrid and electric vehicle development and marketing in China. The government’s total investment into the sector will hit 100 billion yuan, the report said.

Beijing is aiming for the top position in the global new-energy vehicle sector with a planned sales volume of 5 million units by 2020, the report said. The draft plan also said that during the country’s 12th Five-Year Plan (2011-15), China will have a production capability of 1 million new-energy vehicles, with pure-electric and plug-in hybrid vehicles accounting for 50 percent.

To encourage customers to buy new vehicle, Wang Xiaoming, a research fellow at the Industrial Economics Research Department of the Development Research Center of the State Council, was quoted by the Bloomberg News as saying that, the government has decided to lower the price of batteries used for electric vehicles to 2 yuan for each watt-hour by 2015 and 1.5 yuan a watt-hour by 2020, as incentives to lure customers.

Chen Qingquan, chairman of the World Electric Vehicle Association, said he anticipated China will lead the electric-vehicle sector growth, which is expected to accounting for 10-15 percent of the total auto sales worldwide by 2020.

“The Chinese government’s focus on pure-electric and plug-in hybrid vehicles is strategic and quite reasonable to make the nation’s auto industry competitive in the global market, as Western countries have dominated the traditional auto technologies,” China Daily quoted Gao Li, an auto analyst with Huachuang Securities, as saying.

By People’s Daily Online



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