China Automotive Newsletter

18 Фев 2014 | Author: | Комментарии к записи China Automotive Newsletter отключены
SAIC Roewe E50 Electric Cars

Industry observation

More Specific New Energy Car Stimulus May Warm up the Bleak Private Consumer Market in China

Policymakers in China are working on specific measures to push ahead with the development of new energy cars. Apart from subsidies, many large cities represented by Beijing, Shanghai and Guangzhou have already launched or are brewing preferential policies like “no need to participate in plate license lottery” or “no need for registration” for new energy car buyers. At the same time many automakers are taking corresponding actions to promote their new energy models (e.g.

BYD’s program of “Zero down payment, zero interest and zero emission”), hoping to use the government incentives to create their own niche in the private new energy car market.

Good examples: Cities limiting car purchases give green light to new energy cars

Some large cities are capping new car registrations to curb the growth of the car population for traffic and environment concerns. The actions include “License plate lottery” in Beijing, “License plate auction” in Shanghai and “Mix of auction and lottery” in Guangzhou.

However, both license plate lottery and auction will harm the promotion of new energy cars, because the difficulty in getting license plates will encourage consumers to choose larger and higher-grade cars.

At the end of last year, the Ministries of Finance, Science and Technology, and Industry and Information Technology, and the National Development and Reform Commission jointly announced a new policy to urge pilot cities to develop feasible solutions and lift purchase restrictions for new energy cars.


This May, the Ministry of Finance called for the pilot cities to move quickly to lift the restrictions such as license plate lottery/auction and plate number based traffic control on new energy cars.

On July 9, the State Council released the Energy-efficient and New Energy Automobile Industry Development Planning (2012-2020), reiterating that local governments should spare new energy cars from such car purchase restrictions.

SAIC Roewe E50 Electric Cars

With a full understanding of the central government’s green car blueprint, local governments have come to a consensus to give green light to new energy cars. Guangzhou is the first to respond the central government’s call.

On July 31, the Guangzhou municipal government announced the Provisional Administrative Measures to Control Mid- and Small-size Passenger Vehicle Population in Guangzhou, which put a new registration cap of 12,000 units on energy-efficient and new energy cars during the policy period, 10% of the city’s total new registration cap on mid- and small-size passenger vehicles.

Currently, the Beijing municipal government is planning to launch a package of subsidy, registration and infrastructure policies for electric vehicles (EV) at the end of this year.

Meanwhile, it is also said that the Shanghai municipal government may give free license plates to new energy cars. But according to some insiders, the city government has not decided on what types of new energy cars are entitled to free license plates.

Apart from favorable license regulations, local governments will also work out additional subsidies based on the central government’s RMB 60,000 subsidy announced in 2010. For example, a new energy car buyer can get an additional subsidy of RMB 40,000 at most in Shanghai and RMB 60,000 at most in Beijing.

New energy car policies issued/planned by local governments

SAIC Roewe E50 Electric Cars
SAIC Roewe E50 Electric Cars
SAIC Roewe E50 Electric Cars
SAIC Roewe E50 Electric Cars
SAIC Roewe E50 Electric Cars
SAIC Roewe E50 Electric Cars

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