China And Electric Cars

While American politicians were voting on eliminating tax credits for buyers of electric vehicles, auto executives from around the world were gathering to make ambitious plans to sell more electric cars in China.

Volkswagen plans to introduce 25 electric car models to the Chinese market between 2020 and 2025, above and beyond the 15 it is already planning for the next 3 years.  It represents a $12 billion investment.  Other foreign car-makers are also betting heavily on the electric car market in China.  Nissan is embarking on a major sales push in China for its electric Leaf car.  Even General Motors is weighing a broader roll out of the Baojun E100 electric car it developed for the Chinese market.  The company has sold 4,000 of them in just one mid-sized Chinese city since July.

Nearly all Chinese automakers are focused on marketing electric cars and are introducing dozens of new models.  While the country ultimately plans to ban internal combustion cars entirely, in the interim the Chinese government is taking steps to promote electric cars.  Strict new regulations require automakers to sell large numbers of electric and plug-in hybrid cars if they want to keep selling gasoline-powered cars.  But even without the regulations, electric cars will be needed to meet stringent fuel economy targets in place for 2020 requiring an average of 47 miles per gallon for each manufacturer.

China is grappling with severe air pollution problems so reducing automobile exhaust is a very high priority item.  With its enormous population, China, in the near and medium term at least, represents by far the largest market for electric vehicles in the world.  Ultimately, the whole world will follow its lead, even while the United States is currently dragging its feet.

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China Craves Electric Cars, While U.S. Flirts With Ending Tax Credit

Photo, posted August 19, 2016, courtesy of Flickr.

‘China and Electric Cars’ from Earth Wise is a production of WAMC Northeast Public Radio.