Subsidies and government enthusiasm raising appeal of electric cars in China
Generous subsidies and government buy-in are raising the appeal of electric vehicles
Sales of electric vehicles across China are set to rise as Tesla Motors, a California-based EV design and manufacturing corporation, continues its march, as environmentally aware electric-vehicle (EV) consumers begin to reap government subsidies.
It is predicted that EVs will account for at least 11 per cent of all new vehicles sold in China in the next decade, due to growing environmental awareness and stricter regulations, a recent survey states.
The survey by global consultancy firm KPMG indicates that 68 per cent of Chinese respondents expect EV sales to account for 11 to 15 per cent of the market in the next 10 years. The findings are based on information from 200 company executives at car, financial services and rental agencies in more than 30 countries.
The central government and car industry are upbeat that EVs will create a new era in the world’s fastest-growing market. China is not content with playing catch-up in traditional combustion engine technology; it is looking to overtake rivals and become the number one market for mobility.
The KPMG report says increasing air pollution across China, rising fuel costs, stricter emission standards and growing urbanisation highlight the necessity for EVs. This will require technology, further investment in research and development, and help from regulations and tax incentives.
