Government to Push Development of Low Emission and New Energy Vehicles
The central government will be speeding up the development of a low emission and new energy vehicle to support its green goals. The government is expected the move will promote healthy restructuring of the auto manufacturing industry and to rid heavy polluters. The State Council reintroduces tax deduction in hopes to encourage purchase of vehicles with 1.6 liters or below. Taxes in this vehicle purchase are halved for buyers starting October 1 and will run until the end of next year.
The managing director of the Automotive Foresight (Shanghai) Co. Zhang Yu stated that reducing taxes will help stimulate sales of small vehicles. the government also keep tabs on the proportions of new energy vehicles among the newly bought buses and government funded organizations cars. Local government that doesn’t follow guidelines will get their subsidies on fuel and operating expenses reduced. Earlier policies required more than 30 percent must be new energy vehicles among the new purchases. Local governments were also urged not to impose restrictions in the use or purchase of new energy vehicles and to remove any such restrictions.
Gasoline vehicles that falls below the National I Emission Standard and diesel fueled ones that also falls below the National III will be sorted out across the nation by 2017. Compulsory and necessary steps are needed to activate the central government’s 30 percent stipulation of new energy vehicles in new purchases. The absence of these measures will prompt local governments to scale down on the funding and buying of new energy vehicles. A strategic advisory committee led by Vice-Premier Ma Kai suggested the development approach and directions for new energy vehicles in the Made in China 2025 Key Area Technology Road Map.