CHINA Ev programme will shake up the Auto Industry as well...

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    CHINA Ev programme will shake up the Auto Industry as well !!!!!!!!!!!

    Global carmakers are grappling with forthcoming rules requiring them to produce electric vehicles in China, the world’s largest car market. While still under discussion, a draft of the rules — seen by several auto industry leaders at this month’s Shanghai Auto show — would require as much as 8 per cent of their sales in China to be electric vehicles as early as next year. Carmakers who missed the target would be forced to buy expensive “credits” from competitors who overshot. The quota is set to grow in subsequent years, according to drafts of the rules seen by executives. However, the precise percentages and the way they are calculated are still being discussed, the executives said. “It's early days — and how [the rules] are implemented remains to be seen,” said Ian Robertson, a member of BMW’s board, who said the carmaker was prepared to meet whatever quota was imposed. Trevor Worthington, Ford’s vice-president, said the company met weekly with the Chinese government to discuss the policies. The carmaker planned to market its first hybrid vehicle in China next year, while Chinese-owned Volvo said it would introduce its first 100-per cent electric car in China in 2019. The new rules are designed to encourage the local production of battery-powered cars by allowing makers to trade credits. Various types of vehicles will be counted differently towards satisfying the quota, a number of auto industry leaders said — a fully electric car would count more than a hybrid, for example. Jochem Heizmann, Volkswagen China’s chief executive, said the company was making preparations to produce electric vehicles in China next year, together with Anhui Jianghuai Automobile (JAC Motors), one of VW’s joint venture partners in the country, and planned to meet the electric vehicle quota without buying credits. “We are fully with all forces working to be able to fulfil this quota system next year," he said last week. The main beneficiaries of the new policy will be companies that produce electric vehicles locally — such as BYD and BAIC, the largest sellers of electric vehicles in China, which will probably be able to sell excess credits. Locally produced electric vehicles already take advantage of a range of subsidies and incentives — the central government offered subsidies for new EVs of as much as Rmb55,000 ($8,000), while local government subsidies were of similar value, according to BYD. However, these subsidies have decreased this year by 20 per cent and are to be phased out over time. Ultimately the electric vehicle quota trading scheme is supposed to replace government incentives. In addition to subsidies, local governments award licence plates to electric vehicles without restriction, while buying a new petrol-powered car in many cities requires purchasing a licence plate via auction, which can add thousands of dollars to the price of the car. Last year, China was the world’s largest purchaser of electric vehicles, buying more than 300,000. China’s 13th five-year plan that came into effect last year set an ambitious target for cumulative sales of EV’s to reach more than 5m by 2020.

    Now we know why Tesla has said it will build a gigafactory & manufacture Teslas in China

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