subsidies for EV to introduced in May

　　In the general trend of energy saving and emission reduction, China’s new energy vehicles will usher in opportunity for development. In May 5, the State Council issued a notification to further intensify efforts to ensure the realization of emission reduction targets of the 11th five-year plan, “We must continue to demonstrate and popularize new energy vehicles. Besides, the details of the implementation should be issued by the relevant departments by the end of May”.

　　Yesterday, the reporter has learned that new energy car allowance standards are being discussed presently. The Ministry of Finance, Ministry of Science, National Development and Reform still need time to finally settle the subsidy program. To guide the continued consumption of electric vehicles, perhaps subsidies for new energy vehicles will be provide to auto companies instead of directly to consumers.

　　Yesterday, many seniors from automotive companies and policy makers confined that the details of the implementation will be introduced by the end of May. According to original planning, the regulations should have been released in March. However, it has yet to be finalized since interests of all parties can not be balanced. The most critical issue is how to define the subsidies standards for various types of new energy cars and how to provide subsidies to private buyers.

　　It is understood that the forthcoming rules will set new subsidies standards for new energy cars. Subsidies will be varied according to different fuel-efficiencies. The highest allowance will be given to pure electric vehicles, followed by hybrid cars that have a rate of economizing gasoline more than 40%, and the last will be less fuel-efficient hybrid cars.

　　Referring to the form of the subsidies for private cars, Xu Changming, director of Economic Consultancy Center of the State Information Consultancy Center said that in order to guide the continued consumption of electric vehicles, subsidies will be provide to new energy cars leasing out enterprises instead of directly to consumers. Meanwhile policy makers released that competent authorities are worrying about high return rate for electric vehicle technology is not mature enough currently. If subsidies are directly given to private buyers, once instability of quality appears, private buyers will reduce or even resist the use of pure electric vehicles, which will not be conducive to the promotion of pure electric vehicles. If the way of leasing is adopted, private consumers do not have to worry about the quality of vehicles.

　　Senior executives from several auto companies expressed they hope to directly engage in pure electric car rental business. Xu Changming said that if the property right remains in the auto enterprises, they will feel more corporate responsibility. In addition, if the subsidies are directly allocated to the auto enterprises, they will increase the input of new energy vehicles.

　　One source released that even if the subsidies for purchasing new energy vehicles is finally introduced, the allowance standards will be similar to that of state-financed vehicles. Zhen Zijian, deputy director of major projects of energy saving and new energy vehicles of the Ministry of Science’s National Programs for High Technology Research and Development (China’s “863 Program”) said that at present the highest subsidy given to the demonstration units related to public services for buying and using electric vehicles is up to 60,000RMB while every hybrid car that has a rate of economizing gasoline more than 40% can receive 60,000RMB.

　　Confronted with business opportunities, the major vehicle companies are speeding up their pace of introducing new energy vehicles. While the rising auto enterprises BYD and SAIC are launching new energy vehicles, JAC Automotive Group who has just gained a footing in the field of economical vehicles has taken its key step. Recently, JAC introduced the range extended Plug-in Hybrid model Heyue, whose maximum speed can reach 120 kilometers per hour and max ramp is greater than 30 degrees. Driving range can exceed 50 km when only electricity used. JAC Group’s Ankai bus has clearly made new energy bus its future development goals.

　　Multinational auto parts companies have also increased attention on the new energy vehicles. Sun Xingyuan, vice president of Magna China, expressed the hope to participate in the standard-setting for China’s electric car technologies. And currently Magna is consulting with CHINA ASSOCIATION OF AUTOMOBILE MANUFACTURERS TOP10 Committee and China Automotive Research Center. Besides, Magna has ever been involved in the formulation of North American electric vehicle technology standards, especially the standard for battery. Germany’s Bosch Group started the layout of new energy vehicle market much earlier. Presently it has already established an electric car R & D center in China. Rui Shike, Managing Director of Bosch Group, and leader of Asia-Pacific business said that the Bosch Group’s hybrid technology will realize mass production in 2010 and developing electric cars will become one of Bosch’s major tasks in China. At present, United Automotive Electronic Systems Co., Ltd. a joint venture of the Bosch Group and SAIC has about 35 engineers engaged in electric and hybrid operations. In the future the number will be increased to 100.

　　With the promulgation of implementation details for new energy vehicles, the market space will be gradually developed. Zhang Jinhua, Deputy Secretary-General of Society of Automotive Engineers of China, and deputy head of expert group of major projects of energy saving and new energy vehicles of China’s “863 Program” estimated China will truly enter the stage of industrialization of new energy vehicles after 2015.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click: http://auto.sohu.com/20100507/n271967305.shtml