“Many members of the emerging middle and upper classes prefer imported vehicles with nameplates from the United States or Germany – especially larger sedans in which owners can sit comfortably while their drivers navigate China’s often congested roads.”
“The Chinese government initially overestimated consumer demand for electric vehicles, and has made adjustments to its incentive policies,” says research director John Gartner. “Many members of the emerging middle and upper classes prefer imported vehicles with nameplates from the United States or Germany – especially larger sedans in which owners can sit comfortably while their drivers navigate China’s often congested roads.”
Specifically, China is adjusting its program away from battery electric vehicles to be more inclusive of hybrids and plug-in hybrids. Still, the government will find it difficult to implement its policies, Gartner says. The country’s fragmented regional governments and the close relationships between local governments and local vehicle manufacturers have created problems in implementation, especially for vehicle and technology standardization. Competing interests, such as companies producing vehicles with proprietary technologies, have already delayed the release of China’s Energy Saving and New Energy Vehicle Industry Development Plan (2011-2020), making it difficult for companies to plan their investment in EV production and infrastructure. Nevertheless, China’s EV ambitions will provide a huge boost to electric car development worldwide in the long run.
Pike Research’s report, “Electric Vehicles in China”, outlines the market opportunities and challenges for plug-in hybrid electric vehicles and battery electric vehicles in China, and provides an examination of EV battery and charging infrastructure trends in the world’s largest automotive market. The report analyzes government initiatives and policy trends, technology and standards issues, and key industry players in China. Detailed market forecasts for each vehicle category, as well as for EV batteries and EV supply equipment installations, extend through 2017. An Executive Summary of the report is available for free download on the firm’s website.