Chinese new energy vehicle sales targets not met last year, MIIT official says

Gasgoo.com (Shanghai March 11) - China was unable to meet its new energy vehicle sales target for 2012, Deputy Ministry of the Ministry of Industry and Information Technology Su Bo stated during a meeting of the Chinese People's Political Consultative Conference last week. Mr. Su's comments were noted in an Economic Observer News report appearing today. Mr. Su admits that a lot of hard work will have to be done for the country to achieve its goal of 500,000 new energy vehicle sales by 2015.

In 2009, the Ministry of Science Technology and Ministry of Finance announced their intent to further the usage of new energy vehicles in China. The two departments announced their goal for new energy vehicles' share in the Chinese market to reach ten percent by 2012. Meanwhile, Shanghai, Changchun, Shenzhen, Hangzhou, Hefei and Beijing had each set targets of 20,000 new energy vehicles sales last year. According to Automobile Industry Economic Research Institute Executive Deputy Dean Wang Yi, all of these goals were unmet.

Mr. Su (pictured) attributes the slow progress the Chinese new energy vehicle industry has made so far to the relatively low level of the vehicles' core technology. He points out that vehicles powered solely by lithium batteries can only be driven for just over 100 km, while lithium battery-fuel hybrids can be driven up to 400 km to 500 km. Mr. Su also mentions the incomplete infrastructure for new energy vehicles in Chinese cities, with an inadequate number of EV charging posts being a common complaint in many cities. The high retail price of new energy vehicles compared to fuel and diesel powered alternatives is also another matter of contention, with Mr. Su calling for more government subsidies to help alleviate the issue.