Chinese Government Fleet To Buy 30% EVs And Hybrids

July 21st, 2014 by Mridul Chadha

Chinese government bodies will become one of the largest consumers of hybrid and electric cars following a government order that requires that at least 30% of all new vehicles purchased by government agencies be electric, hybrid or plug-in vehicles.

The order is aimed at complimenting the Chinese government’s other efforts to reduce air pollution from the ever-increasing fleet of conventional vehicles. Specific annual goals have been announced for regions that are plagued with the problem of air pollution. 15% of all new vehicles purchased by public institutions and government bodies in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Pearl River Delta this year would be electric, hybrid or plug-ins.

The plan was jointly released by the National Government Offices Administration (NGOA), the National Development and Reform Commission, the Ministry of Finance, the Ministry of Science and Technology, and the Ministry of Industry and Information Technology. The minimum share of clean cars in the fleets owned by public institutions and government bodies would be increased on a regular basis, to 30% in 2016.

Apart from creating demand for clean vehicles, the government has also taken several steps to provide supportive infrastructure for such vehicles. The central government will provide subsidies to clean vehicles priced at less than 180,000 yuan ($29,000 U.S.). The central government has also directed authorities that ratio of charging points for clean vehicles should be at least 1:1. Clean vehicles will also get reserved parking spaces at government offices.

To promote increased use of clean vehicles by private consumers the Chinese government has also exempted new clean vehicles purchases from the 10% sales tax starting from September 1st, 2014 and going until December 31st, 2017. As per a five-year roadmap announced by China’s State Council, the country should have charging services for half a million electric vehicles by 2015.

These measures are expected to provide a much-needed boost to the sales of clean vehicles. According to Chinese news agency Xinhua, electric and hybrid cars represented just 0.2% of the 11.7 million cars purchased during the first half of this year.

Image credit: Dennis Cheng | CC BY-SA 2.o









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