Car makers could face new Chinese electric car quota

Up to 8% of car sales in China would need to be electric by 2018 under draft legislation with big implications for luxury car brands

Volkswagen e-Golf - charging

Car manufacturers looking to sell in China could face new rules that require eight per cent of all vehicles sold to be electric as early as next year.

A draft piece of legislation, shown to automotive executives at April’s Shanghai Motor Show, is said to contain a new clause for a quota that would require as much as eight per cent of vehicles sold in China to be EVs by 2018.  

Best hybrid cars on sale now

Car makers who miss the sales targets would be forced to buy “credits” from their competitors – likely to be domestic producers –  who have either met or exceeded the Government mandated target. 

The quotas would favour domestic Chinese producers such as BYD and BAIC which are the largest EV sellers in China and enjoy subsidies from the Chinese Government. Foreign car makers with no hybrid or EV models could end up paying pricey penalties to Chinese car makers as a result of the quota. With the Chinese market already hugely important to many European car brands and likely to be come more so in future, any new legislation could have a major impact in shaping product development strategies and the make-up of model ranges in years to come. 

• Best electric cars on sale  

However, car makers say they are ready for the challenge. BMW - which currently has the electric i3 and i8 as well as plug-in versions of the 3 Series and the 5 Series has already said it would be prepared to meet the Chinese Government's targets. Speaking to the Financial Times, Ian Robertson, a member of BMW's board said: "It’s early days – and how [the rules[ are implemented remains to be seen." 

Jochem Heizmann, Volkswagen China’s chief executive, said the company was working to produce EVs in China next year alongside Chinese carmaker Anhui Jianghuai Automobile (JAC Motors) and was looking to meet the quotas without resulting to buying the expensive credits. 

Heizmann said: “We are fully with all forces working to be able to fulfil this quota system next year.” 

Would a similar sales quota boost EV uptake in the UK? Tell us your thoughts in the comments below...

Recommended

Pay-per-mile road pricing no longer politically toxic, study suggests
Motorway
News

Pay-per-mile road pricing no longer politically toxic, study suggests

The Social Market Foundation says fuel duty unfairness opens the door for road pricing schemes
15 Oct 2021
Transport secretary Grant Shapps confirms digital driving licences are on the way
Digital driving licence
Consumer news

Transport secretary Grant Shapps confirms digital driving licences are on the way

DVLA plans to offer a digital provisional driving licence by 2024, with full digital licences to follow at a later date
17 Sep 2021
Electric car charge points to be installed in every new home in the UK
Home charging point
News

Electric car charge points to be installed in every new home in the UK

England will be the first country in the world to introduce mandatory electric car charging points for new-build homes
10 Sep 2021
Government asks for more Smart Motorway safety data with revised Highway Code on the way
smart motorway
News

Government asks for more Smart Motorway safety data with revised Highway Code on the way

A revised version of the Highway Code will cover Smart Motorway driving, as National Highways pledges to improve data and monitoring
8 Sep 2021

Most Popular

New Kia EV6 2021 review
Kia EV6 front tracking
Kia EV6

New Kia EV6 2021 review

With a sporty drive, 300-plus miles of range and plenty of tech - could the new Kia EV6 be one of the best electric cars on sale?
19 Oct 2021
Cupra Born vs Mercedes EQA vs Volvo C40 Recharge: 2021 group test review
Cupra Born vs Mercedes EQA vs Volvo C40 Recharge
Car group tests

Cupra Born vs Mercedes EQA vs Volvo C40 Recharge: 2021 group test review

The all-electric Volvo C40 Recharge meets another premium wannabe in the Cupra Born. But can they beat the super-posh new Mercedes EQA?
19 Oct 2021
New Ford Mustang Mach-E GT 2021 review
Ford Mustang Mach-E GT - front
Ford Mustang Mach-E

New Ford Mustang Mach-E GT 2021 review

With 480bhp and a 310-mile range, does the new Ford Mustang Mach-E GT offers the perfect blend of performance and practicality? We find out...
19 Oct 2021