NEV adoption rises in China on the promise of a massive government stimulus.
Saab's sleek electric 9-3 Image: NEVS |
New Energy Vehicles (NEVs) have been designated as a strategic priority for Xi Jinping's government.
A further 100bn yuan in investment will be introduced over the next four years to fast-track construction of charging stations and prop up subsidies.
China fell 26% short of its target of 5m cars by 2020 this year, despite incentivising consumers with subsidies and privileges. However, the lack of charging stations and personal garages fitted with charging equipment, makes NEVs an inconvenient choice for many Chinese motorists. Xi Jinping hopes to remedy this and make China a world leader in the NEV market.
EV and plug-in hybrid production rose sixfold in November from 2014 levels and looks set to continue growing through 2016 on the back of government support and investment. China produced 279,200 NEVs in the first 11 months of 2015, quadrupling the previous year's total.
Foreign automakers are also looking to capitalise on the growing market. National Electric Vehicle Sweden announced a $12bn deal to supply 250,000 electric vehicles to Chinese leasing firm Panda New Energy.
NEVS, which acquired the assets of the bankrupt Saab Automotive, will provide Panda with 150,000 9-3 sedan electric cars by the end of 2020, as well as 100,000 other EVs from its associated companies.