Recharging China’s Electric Vehicle Policy
on August 1, 2013
Electric vehicles offer China an opportunity to reduce its reliance on foreign oil, improve air quality by curbing emissions from the burgeoning transportation sector, and enjoy the future economic benefits of being a global pioneer in an emerging industry. While the government has prioritized the development of electric vehicles, more can be done to ensure success. Recommendations: 1. Open the domestic electric vehicle market to leading international automakers to promote technological development. 2. Prioritize promoting electric vehicle use in commercial operations that rely on large numbers of vehicles, such as car-rental and car-sharing services, business distribution networks, and taxi companies in city centers, and as official government vehicles rather than concentrating on individual consumers. Public procurement and corporate fleet orders will help establish the electric vehicle market. 3. Create an environment that encourages electric vehicle use, including building the necessary infrastructure and providing incentives to stimulate demand, instead of handing out hefty subsidies for purchasing electric vehicles. This effort should be better integrated with ongoing urbanization policies and the entire transportation system. 4. Focus on developing a self-sustaining business model for electric vehicles instead of setting specific targets for quantities sold.