New-energy cars: China could overtake US in one to two years

Want China Times, Hsu Chang-ping and Staff Reporter 2015-02-25

Mechanics examine a JAC Motors electric car at a factory in Hefei,
Anhui province, July 15, 2014. (File photo/Xinhua)

China's government has made it policy to encourage people to use new-energy cars, with the goal of building a complete industry chain and putting 5 million new vehicles on the country's roads by 2020.

China is expected to surpass the United States as the world's biggest market for new-energy vehicles in the next one or two years, despite low interest in second- to fourth-tier cities, where only small or no government subsidies for green cars are offered, experts say.

Figures compiled by the official China News Service indicate 6,599 new-energy vehicles were produced in China in January, an almost fivefold increase compared to 2014.

Although 40,000 more new-energy vehicles were sold in the United States than in China in 2014, Beijing's green car push with accompanying incentives could enable China to overtake the US as the world's biggest new-energy vehicle market in just one to two years, industry insiders said.

China News Service said the government provides large subsidies for new-energy cars in the largest cities like Beijing and Shanghai, where infrastructure such as charging stations and after-sales services are relatively well established.

In lower-tier cities like Jinan and Baotou, however, subsidies are small or non-existent. This has hampered the local takeup of new-energy vehicles, given their higher price compared to conventional cars that run on gasoline, the report said.

In addition, potential buyers in lower-tier cities feel they have better air quality than in top-tier cities and have less need to worry about pollution. The lack of charging infrastructure also makes it impractical to own an electric vehicle.