Premier Wen Jiabao adopts energy saving and new vehicle industry plan

Clare Saxon Ghauri
22 May 2012

BEIJING: The China State Council has approved the Energy Saving and New Energy Vehicle Industry Development Plan at a meeting chaired by Premier Wen Jiabao, who stressed the importance of clean technology in boosting the economy.

At the State Council meeting last month, Premier Wen Jiabao highlighted the urgent need for China to accelerate the development of energy-saving and new energy vehicle industries, to relieve pressure on the environment, promote auto industrial restructuring and upgrading, and cultivate new economic growth potential.

In China, the electric vehicle industry is expected to help transform the rest of the nation's automotive industry, because improving low carbon vehicle technology will cause an integrated industry-wide upgrade. Currently, focus is on EVs, plug-in hybrid vehicles, non-plug-in hybrids and energy efficient internal combustion engine automobiles. 

China has set a target of reaching total accumulated sales of pure EVs and plug-in hybrids of 500,000 by 2015. By 2020, total sales are expected to exceed 5 million.

The Plan also outlines that average fuel consumption per vehicle must be lowered to 6.9 liters per 100 kilometers by 2015, and 5 liters per 100 kilometers by 2020.

In order to develop a well-established industrial base, the Plan requires new technology to reach an internationally advanced level. Greater R&D innovation will be driven by a new R&D system, which will help trigger break-throughs in core technologies, advances in fuel economy, and safer, lighter and more reliable battery systems. 

To speed up pilots and deployment, the Plan states that incentives must be provided to motivate procurement and use of energy saving vehicles.

Charging infrastructure is also a critical element to achieving the set targets, in particular those related to slow-charging stations and fast-charging facilities in local conditions. Battery recycling and management framework and methods will be explored in order to establish a tiered battery-use and recycling management system.

Equally important will be the improvement of a standard framework and market-entry mechanism, so through fiscal and taxation policy support, the market will actively pursue international collaboration.

Changhua Wu, Greater China Director, The Climate Group, said: "The Plan took longer than expected to roll out, but we are delighted to see some solid targets and commitments set to guide China’s market transformation in energy saving and new energy vehicle industries. As one of the seven new and strategic emerging industries identified by the 12th Five Year Plan to lead China’s industrial restructuring, this Plan will help lead the Clean Revolution of the auto industry in China. To achieve these ambitious targets, the Government will put together a well-developed policy framework to push and pull the market development of the industries involved. The foundations of the Plan will also continue to create many more opportunities for innovation and market transformation in the future."

Read our analysis of China's 12th Five Year Plan

Facebook icon
Twitter icon
LinkedIn icon
e-mail icon
Google icon