China’s auto ownership expected to exceed 200 million in 2020

It is estimated that automobile ownership in China will exceed 200 million in 2020, causing serious energy security and environmental issues, said Wang Fuchang, director of the Department of Equipment Industry under the Ministry of Industry and Information Technology, on Sept. 5.

Striving to promote the energy efficiency of traditional automobiles and the industrialization of alternative-energy automobiles has become an urgent issue that the Chinese auto industry must address.

Wang said when delivering a speech at the 2010 International Forum on the Development of the Chinese Automotive Industry that fostering and developing alternative electric vehicles will aid in the long-term development of the auto industry. Popularizing energy-efficient automobiles aims to reduce fuel consumption quickly and considerably.

First, developing energy-efficient and alternative-energy automobiles are both significant and either of them cannot be neglected, Wang said. Second, the relationship between independent development and opening up and international cooperation should be handled properly.

Wang said China should adhere to the principle that technological innovations are the principal driving force for the development of China’s energy-efficient and new-energy automobile industry. At the same time it must make full use of global innovative resources by advancing international technological exchanges and cooperation through various cooperation mechanisms and channels.

Third, the relationship between correct guidance and the role of market forces should be handled well. Fourth, the relationship between industry cultivation and supporting infrastructure improvement should be handled properly, he said.

Wang said that China’s auto industry should achieve the following objectives in 2020 after 10 years of efforts. First, the country should master the core technology for energy-efficient and new-energy cars, and the overall technologies for these cars should meet high international standards.

Second, a fairly complete new-energy car industrial system should be developed, and some internationally competitive auto manufacturers and key parts suppliers should be established. Third, the sales of pure-electric vehicles and plug-in hybrid electric vehicles should increase by a large margin. Fourth, fuel economy should reach high international standards, he said.

Wang said that China will encourage automakers to increase their capacity for independent innovation and to master core technologies, develop a rational industrial plan and set clear development priorities, perfect the laws and regulations for energy-efficient and new electric cars, carry out more pilot projects, as well as provide consumers and users of energy-efficient cars with tax incentives. All the great efforts are made to promote the development of the energy-efficient and the new-energy car industry.

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