China announced that they have set the deadline of 2019 to implement tough new sales goals for electric plug in and hybrids vehicles which lessens concerns about the previous time crunching deadline of next year. Manufacturers will need to produce 10% of annual sales by 2019 which would rise to 12% for the year after.
China is the world’s largest auto market and quotas are a key part of a drive to develop their own new energy vehicles (NEVs) market aiming to ban the production and sale of cars that use traditional fuels. Manufacturers will receive credits for NEVs which also include plug in hybrids and full electric cars that can be traded or transferred. Companies that have annual sales volumes of about 30,000 units will have to meet target sales. The credits received will vary depending on the range and performance of the car and will be used to calculate if manufacturers have met their quota.
Electric vehicle production is expected to reach more than one million annually in China by the set date which will be about 4% of sales. The country also aims to limit air pollution and close competitiveness between newer domestic auto markets and global rivals while also striving to set goals for electric and plug in hybrid cars to make up at least one fifth of Chinese auto sales by 2025.