China considering $16bn EV funding
Government officials in China are considering committing as much as 100 billion yuan (US$16 billion) in funding for electric vehicle (EV) charging facilities in a bid to boost demand for clean cars
Government officials in China are considering committing as much as 100 billion yuan (US$16 billion) in funding for electric vehicle (EV) charging facilities in a bid to boost demand for clean cars.
The increased funding would be a boon for car manufacturers dealing with consumer concerns over the price, reliability and convenience of electric vehicles.
It would also bolster the government’s efforts to fight pollution and develop its local EV industry.
Among recent government initiatives, China will exempt EV’s, plug-in hybrids and fuel-cell vehicles from a purchase tax as of next month, and has instructed government departments to buy clean vehicles for their fleets.
According to the China Automotive Technology and Research Center, the government is also considering allowing non-auto manufacturers to manufacture EV’s to bolster competition.
China’s central government set a target in July for EV’s to make up 30 per cent of government vehicle purchases by 2016.
While sales of electric vehicles in China have lagged behind government targets, BYD, the electric automaker partially owned by Warren Buffett’s Berkshire Hathaway Inc, earlier this month cited encouraging government policies for helping the company’s EV sales to increase six fold during the first half of 2014.
The government has recently introduced policies to promote EVs spurred by the risign threat of pollution.
Charging infrastructure is seen by experts and the public as one of the primary obstacles to a greater uptake of EV’s across China.