As EV sales lag, China's government may introduce more subsidies and exemptions from license plate limitations.
After a three year subsidy program ended last year, uptake of electric vehicles is still a long way from the governments target of 500,000 sales by 2015. The trial program, which offered as much as 60,000 Yuan ($9,650) for pure EVs, and 50,000 Yuan ($8,000) for plug-in hybrids, has encouraged less than 13,000 people to purchase an eco-friendly motor over the period.
Charging an electric car Image: Electric Cars Report |
Miao Wei, minister for industry and information and technology, told the National People’s Congress in Beijing that it would be more “realistic and practical” for the government to promote hybrids and other fuel-efficient vehicles rather than just EVs. The government will seek to amend the policy in the first half of 2013.
Meanwhile, Beijing has announced it will exempt EV and plug-in hybrid buyers from the monthly license plate lottery and may even subsidise buyers by for as much as 120,000 yuan ($19,115) on new purchases. The city hopes to create a fleet of 5,000 EVs and plug-in hybrids this year, including 3,000 taxis and buses and 2,000 privately owned vehicles. Although promising, this is still only a fraction of the five million cars already on the streets of Beijing.
The city has not mentioned whether fuel-efficient cars will also be subject to its proposed congestion charges. Despite a stringent lottery and recently increased parking charges, vehicle adoption has not eased traffic on the city’s streets.
However, the scheme, which would not include government vehicles, may draw public criticism for unfair taxation on private vehicle owners. Furthermore, many see stuffy and overcrowded public transport as an inferior alternative.