A Chinese government has formulated new environmental policy for automakers, which states that every automaker in China has to produce 8% of sales in China comprising of plugin cars, either fully electric or hybrid models.
Japanese giant Honda has recently announced their new battery cars to be launched in 2018, and now General Motors is expanding feathers to grab the market as early as possible. G.M has announced to launch 10 new electric cars by 2020 in China.
Not only Honda but also Ford, Volkswagen, AG and Nissan also making aggressive plans towards the production of electric and hybrid cars for Chinese market.
Matt Tsien president of G.M motors China also said that he expects G.M to sell 150,000 units of electric and hybrid cars annually in China by 2020. These figures will grow up to 500,000 by 2025.
On last Tuesday, G.M unveiled its plans to manufacture Chevrolet Volt in China and sell under its brand.
It became much harder for foreign auto manufacturers to sell electric cars in China because previously Chinese government wanted them to transfer intellectual property rights to local partners, also pay 25% import duties even the cars are being manufactured in Chinese factories.
But recently, policy shift can be seen which brings more ease for automakers to sell electric cars in China. Beijing is now focused on attracting more foreign automakers to produce and sell electric and hybrids cars in the country.
This policy shift is also a reason to meet the environmental targets that the policy makers have set for them, focusing on low carbon emissions and taking the stakeholders on board is becoming one of their top priorities regarding environmental health.