China will be implementing new electrified vehicle initiatives next year, using some of the same strategies that helped California achieve higher-than-average EV sales.
The plan, as reported by Reuters, is a two-step approach: require automakers to sell a percentage of electrified vehicles (EVs), while also expanding the available incentives for consumers that buy them. Officials in China said they created these new policies after watching what has succeeded in California.
“Relevant national departments are currently studying and drawing lessons from the U.S. state of California’s methods to encourage the use of new energy cars (to tackle vehicle emissions),” said Xu Heyi, chairman of the state-owned Beijing Automotive Group. In China, “new energy cars” refers to battery electric vehicles (BEVs) and plug-in hybrids (PHEVs).
For consumers, this means hybrid vehicles will soon qualify for incentives, expanding the list of eligible vehicles beyond the current BEV and PHEV models.
Consumers will also “receive credits redeemable for money based on the distance they drive in full electric mode, with drivers using gasoline being required to pay an additional fee for the distance driven,” said Reuters.
Two of China’s largest hybrid carmakers, BYD Co and SAIC Motor Corp, along with Japan’s Toyota Motor Corp are positioned to benefit right way from this new policy, as all three already have hybrid vehicles on the market. Other automakers, including General Motors and Volkswagen, have also announced that they will soon be bringing new EVs to the region.
The other portion of China’s new plan will be directed toward the automakers as a three-tiered system of credits for vehicle sales. Vehicles with lower carbon emissions earn more points, with the maximum amount of credits awarded for BEV sales. Sales of PHEVs receive less credit, and a smaller credit will be granted for hybrid sales.
Conventional gasoline-powered vehicles accumulate negative points, which will require automakers to buy credits from other companies.
These new policies will build on other pro-EV policies China has recently implemented, which include allowing zero emission vehicles to drive on days otherwise restricted for the driver and cutting EV owner’s annual vehicle ownership fees.