SHANGHAI, Apr 12 (SMM) – Auto producers in China are not expected to be short of the “credits” needed to operate in the country after 2020 as more new-energy vehicles are produced, according to Mo Ke, chief analyst at RealLi Research.
Carmakers in China that sell over 30,000 units annually must earn “credits” equivalent to 10% of their output and imports. Those who fail to meet the target will have to either buy credits from other automakers or be fined. The ratio is expected to rise to 12% by 2020.
These credits can be earned by production new-energy vehicles. The better these new-energy vehicles are in terms of energy efficiency, the more credits can be generated. One can also earn the credits by producing energy-saving conventional fuel-based vehicles.
Mo expected China’s electric vehicles (EVs) to remain in rapid growth in the next few years, with electric passenger cars up to 2.16 million units and overall EVs up to 2.5 million units by 2020, he told delegates at the SMM CoLiNi Summit in Quzhou, Zhejiang on Thursday April 12.
He added that China’s credit programme is likely to drive automakers’ technology development and build local brands.
For editorial queries, please contact Daisy Tseng at daisy@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn