New energy vehicle industry in China – additional information
Faced with a rising demand for energy and an increasing amount of environmental issues in recent years, the new energy vehicle market has become one of the fastest-growing markets in China. New energy vehicles refer to vehicles that are partially or fully powered by electricity. They include battery electric vehicles, hybrid electric vehicles, fuel cell electric vehicles and other vehicles powered by alternative fuels.
In 2012, the Chinese government set plans to develop the new energy vehicle market, aiming at sales of 500,000 new energy vehicles by 2015 and five million by 2020. Fuelled by purchase incentives, new energy vehicle production exhibited a growing trend for all types available. As shown in the graph above, new energy vehicle production in China more than sextupled during the 14 months leading up to August 2015.
Nevertheless, next to traditional automobile markets, the new energy vehicle market in China remains relatively small. In 2014, total automobile sales in China had reached over 23 million units, among which only 74,763 were new energy vehicles, accounting for less than one percent of the overall market shares. To encourage market competition and achieve better prices for consumers, the Chinese government set out plans in 2015 to reduce subsidies on new energy vehicles.
Further information on electric mobility can be found here.