China sets electric car quotas

Published by on 06.22.2018 - 3 min

Tags : Markets Outlook

China has set a new course. By 2019, electric cars are set to account for no less than 10% of all car sales. Enough to boost an already rapidly-growing market everywhere around the world.

The announcement was made back in September 2017; since then, manufacturers around the world have been pulling out all the stops to be ready on day one. 10% is the quota that China has set for rechargeable hybrid or electric car sales from 2019 onward, a move that, coming from the world’s largest car market, will inevitably carry a massive impact. And while other countries like France and Norway are known for their proactive policies, no government had gone quite so far until then. In addition to a dozen American States having made similar choices, China reminds us in no uncertain terms that electromobility is among the essential drivers of sustainable development.

Increasingly affordable electric cars

Clearly, this announcement represents a real boost for the entire industry, with benefits for both manufacturers and consumers. China also shows that it has full confidence in the automotive sector to meet this challenge. To meet this new sales quota, all manufacturers are coming together to offer electric cars at competitive prices—all the more so given the government’s future targets of 12% by 2020, and 20% by 2025.

Electromobility leadership needs to be strengthened

Aware of the high stakes, Renault positioned itself well from the outset by setting up the eGt New Energy Automotive company with its Chinese partner Dongfeng. Within this new entity, the partners intend to pool their skills and produce electric cars that are both innovative and competitively priced. This is exactly what is needed to meet the expectations of Chinese customers and public sector organisations, against a backdrop of mass industrialisation and pollution in city centres.

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