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China Still Plans To Dominate Electric Cars (Details To Come Later)

Five to eight years ago, Chinese carmakers were going to blast into the U.S. car market and sell huge volumes of inexpensive small cars–just like the Germans, Japanese, and Koreans before them.

Then, two or three years ago, Chinese auto companies were going to leapfrog directly into electric cars, dominating that market globally.

Neither of those things has happened.

At least not yet.

China’s national government, working closely in partnership with large industrial companies, still has as its official policy that “new energy vehicles” will become a major part of the country’s output–and domestic sales.

But, as knowledgeable China car-industry observer Alysha Webb points out in a recent ChinaEV blog post, the pesky details of how that might actually happen have been left for the future.

Analyzing the “Plan for the Development of the Energy Efficient and New Energy Automotive Industry (2012-2020)” released in June, she notes that it deals largely with production, not market forces.

It sets a goal of having 500,000 plug-in vehicles on Chinese roads by 2015–down from an earlier goal of 1 million–and 2 million by 2020.

And it focuses on using foreign technology wherever possible, which acknowledges that the quality issues plaguing parts of its lithium-ion cell fabrication industry aren’t easily or quickly solved.

As Webb summarizes, “the Plan shows that the government is still set on growing China’s EV sector—even if it doesn’t quite have a good way to do that.”


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