New energy vehicle sales up as government offers $19,000 subsidies
The world's fastest growing auto market saw sales of electric vehicles (EVs) and hybrids increase to 8,159 units last year, with almost 70% of those being battery-electric. Shenzhen, Guangdong Province, plans to purchase 500 electric taxis and 1,500 electric buses this year, which will raise the city's EV and hybrid fleet to 5,000 vehicles. The SEZ (Special Economic Zone also the home of Buffet-sponsored EV maker BYD Motors, hopes to expand its EV fleet to 35,000 by next year.
Geely's IG electric car Image: Geely |
New energy cars sales have grown since the government introduced a series of generous new subsidies of up to 120,000 yuan ($19,000) – more than double last year's subsidies, which were capped at around 60,000 yuan ($9,500) for those buying domestically produced EVs.
The situation, however, is considerably less favourable for foreign EVs importing into China, which will command 25% customs duty as well as a 9% sales tax. According to the China Daily, the government will invest $1.5 billion to advance the EV market in the next ten years.
Sales conditions are already tough for foreign EV brands in China; Toyota sold only one Prius in 2010. The government has also recently scrapped incentives for foreign automakers unless they are developing new energy vehicles – a sector in which China is trying hard to become a world leader. Despite this new legislation, China insists it will not force foreign automakers to share technology, claiming that technology transfer and cooperation “will not be a pre-condition for market access”.