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8/01/2019

Topic Reading-Vol.2668-8/1/2019


Dear MEL Topic Readers,
Proposal to stimulate production of new energy vehicles in country
China is driving in top gear to lead the world clean energy vehicle technology and business. There are over 3 million electric vehicles on the road in China, more than the US and European markets combined. More surprisingly, nearly half of the e-vehicles on the US road are in California and close to a quarter in Europe is in Norway, which means that other parts of those markets are quite behind in the electric car race.
Now China is pushing its accelerator even harder to be a cleaner vehicle environment by the credit system. They are already posing energy vehicle quota that automakers are obliged to achieve. In 2019, carmakers that sell 10% or more new energy vehicles of the total sales get good credit and 12% in 2020. Those that haven’t achieved the target ratio are required to buy credit, meaning they need to pay penalties. Now, they’ve announced new quota for the following years, 14% in 2021, 16% in 2022, and 18% in 2023. They also announced to give less-negative points on hybrid vehicles to improve overall fuel efficiency on the road.
Since China’s car market is the largest in the world, accounting for nearly a third of the world’s car market, all the global car manufacturers are putting their best technologies and most capital into the market. As a result, China is going to lead the world’s cleaner vehicle market, production and technology.
One of the most prominent science fiction writers, Arthur C. Clarke, wrote in his 2010: Odyssey Two that Chinese spacecraft beat US-USSR spaceship to reach one of Jupiter’s moons to probe the abandoned US spaceship, Discovery. He wrote it in 1982. What foresight!
Enjoy reading and imagine what the world automotive market will be like in the middle of the next decade.

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