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China - Electric Vehicles to Generate 15% Auto Sales by 2020
May 21, 2010

The Chinese hybrid and pure electric vehicle is expected to constitute more than 15% of the total market by 2020.

Securities Times, (the only official newspaper in China authorized by the China Securities Regulatory Commission) has revealed that the sales of hybrid and pure electric vehicles will represent more than 15% of the Chinese auto market as well as 7-12% of the global auto market by 2020, as reported by China Daily.

China has taken some crucial decision and made plans to make the country one of the leading manufacturers of hybrid and electric vehicles in coming years. In addition, the country believes in creating a leading industry that will create jobs, increase exports, reduce urban pollution and decrease its dependence on oil.

Technological innovation and financial support are the main boosters to new energy vehicles. Besides, the EV industry in China has progressively been developing to improve the performance of electric cars.

The Chinese government is expected to soon come up with new plans that fillip domestic production of electric vehicles. The electric cars, which qualify for subsidies, include those that have got production license from the government and assembled in China no matter whether they are manufactured via domestic or joint venture firms. Import cars will not be benefitted from the government policy in the initial stages.

The stimulus plan will give more support to zero emission electric cars even ahead of hydrogen fuel cars, fuel cells cars and hybrid cars. The center of attraction of stimulus policy, which will soon be disclosed, will be on electric cars.

RNCOS, a leading market research firm, has said in its report “Hybrid Car Market Forecast to 2012” that high cost of energy-saving vehicles poses the biggest challenge for the industry. In fact, the prices of these automobiles are very high in China because of huge R&D cost involvement in their production.

According to a Research Analyst at RNCOS, “The Chinese electric car industry is at the initial stages of development, but it is expected to boom in coming years. In order to reduce enormous R&D costs, the manufacturers should work of attaining technical excellence and should go for strategic co-operation.”

Related Market Research Reports:
India Passenger Car Market Analysis
Brazil Automobile Forecast to 2013
China Automobile Sector Forecast to 2012