Global automakers have urged China to delay and soften planned quotas for sales of electric and hybrid cars, saying the current proposals are impossible to meet and would cause big disruption to their businesses, according to a letter seen by Reuters.
The letter, dated June 18 and addressed to China’s Minister of Industry and Information Technology, Miao Wei, amounts to a protest against key elements of the country’s new energy vehicles (NEVs) policy.
The policy includes a goal for hybrid and electric cars to make up at least a fifth of Chinese vehicle sales by 2025, with a staggered system of quotas beginning in 2018.
“The proposed rules’ ambitious enforcement date is not possible to meet, and if unchanged would lead to a widespread disruption of the product portfolio of most automakers operating in China. At a minimum, the mandate needs to be delayed a year and include additional flexibilities,” the letter said.
It is signed by the American Automotive Policy Council (AAPC), the European Automobile Manufacturers Association (ACEA), the Japan Automobile Manufacturers Association (JAMA) and the Korea Automobile Manufacturers Association (KAMA).
As well as aiming to reduce pollution, China is looking to promote electric vehicles to try to steal a march on European, U.S. and Japanese automakers which have long outpaced Chinese companies in exports of combustion engine cars.
According to management consultants McKinsey & Co, 43 percent of the 870,000 electric cars produced in 2016 came from China. Germany and the United States accounted for 23 percent and 17 percent respectively.
Source: Reuters
