Sustainable Future in China: The Development of Electric Vehicle

From January 14th to 15th, the third annual China EV100 Forum 2017 was held in Beijing. The forum focused on the development of electric vehicle and its market in terms of technology and public policy.

Technology Improvement:

 The minister of Science and Technology Wang Gang: We cannot rely on adding batteries to improve the electric vehicle. In order to advance to reach the maximum mileage, we need to increase the energy density of batteries to 200Wh/kg in short run, and 350Wh/kg in long run. Gang also mentioned that, though China still doesn’t own advantages in the fields of powertrain system and the lightweight material, China has special advantages in the development of fuel cell batteries. We can consider focusing on rechargeable batteries as well as applying fuel cell in dual power for range extended at the incipient period of fuel cell’s R&D.  

Supporting Infrastructures:

  The minister of National Energy Commission Zheng Zhajie announced that in 2017, China aims to expand the charging network by adding 800,000 charging points, including 700,000 private and 100,000 public charging points. To reach this goal, China needs to invest efficiently in increasing charging stations, especially in residential areas, improve customers’ experiences by uniting different industries, ensuring safety, providing more government support in terms of policy and figuring out the most efficient business model.

Blue Print of 2030:

  Ouyang Minggao, the Executive Vice Trustee of China EV100, described what the future path of Chinese EV need to be like. The future Chinese EV should be lighter, intelligencer and more environmental-friendly. China need to be the pioneer in developing EV, and facilitator in launching hybrid vehicle. In 2030, the clean energy vehicle will take up to 40% of the total market sales volume and the market inventory of clean energy vehicle will reach 80,000,000.

Supporting Policy:

  The chairman of BYD Company Ltd., Wang Chuanfu believed that the policy in terms of clean energy will boost the development of EV. In 2015, the market inventory of clean energy was 1%, which is a turning point for China. In order to reach the market inventory of 10% in 2020, two policies should be carried out. First, lower or cancel the electrical vehicle purchase tax. Second, lower or cancel the consumption tax for Plug-in Hybrid Electric Vehicle (PHEV). The tax is currently 2%, 5%-9%. Together the original 30% tax can be reduced to less than 15%, resulting in increasing preference in purchasing clean energy vehicles.

  Currently, the whole vehicle industry is preparing for the transformation in Chinese EV market, including Das Auto, DiDiChuXing, Weilai, BYD and Toyota, etc. China realized that technical solutions alone cannot support change unless the technologies are developed with an understanding of the constraints of economics, , finance, regulation and support of public policy.

 

Reference:

  • “Annual EV Conference 2017’’, Sustainable Travel in China, GIZ Transport Blog, February 3, 2017
  • “AutoHaus CHINA”,ZhongGuoQiCheSanShiRenZhiKu, January 16, 2017

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