In December, China will release the first new energy vehicle industry development roadmap, possibly proposing mild hybrid cars as energy saving vehicles, as one of the moves to guide the sector's development in the world's largest electric car market.
The drafting of the industry roadmap, including roadmaps for seven related technologies, was led by the Society of Automotive Engineers of China, and is now subject to government review and modifications.
"The nation's electric vehicle sector may need another 15 years of development before reaching a world-leading level, so the government weighs in heavily on new energy vehicle research and development," Fu Yuwu, chairman of the Society, told a forum on Oct 12. The event took place on the sidelines of the Wuhan Motor Show 2016, organized by Hannover Milano Fairs Shanghai.
The society will propose mature mild hybrid technologies as an alternative approach to cut fuel consumption and emissions.
Fu said: "Mild hybrid consumes less fuel than combustion, so our society propose hybrid technologies without plugs be included in the roadmap as energy saving vehicles."
If listed among energy saving vehicles, mild hybrid car buyers will be eligible for thousands of yuan purchase tax cut. A stimulus measure, effective from Oct 1, 2015, halved the tax on purchases of passenger vehicles with engines that are 1.6 liters or smaller.
Efforts were also made to boost the new energy sector's development through guiding the input of social resources toward the emerging sector, now that the fiscal subsidies provided to purchase them are shrinking.
Aiming at increasing carmakers' R&D activities relating to new energy vehicles, the Ministry of Industry and Information Technology is about to roll out a dual-credit scheme for mandatory production, in the hopes of at least highlighting the social costs incurred in reducing car emissions.
The country is only admitting new energy carmakers into the auto manufacturing industry, halting the approval of conventional vehicle makers.
Beijing-based vehicle design firm CH Auto Technology received approval to be a standalone new energy passenger carmaker on Oct 10. It is the third of its kind approved by the National Development and Reform Commission, after BAIC Group's electric car making arm Beijing Electric Vehicle and Hangzhou Changjiang Passenger Vehicle.
The Society views the manufacturing levels of the emerging battery powertrains as being the main issue for the Chinese new energy sector.
Gao Bowen, sales director of Dongfeng Electric Vehicle, said that the nation's new energy vehicle development is in its elementary stage.
She said the domestic technology in traction batteries is not mature, so many companies have concerns about promoting the wide usage of fully electric cars. Customers also worry about safety issues.
"Dongfeng employs a safety monitor system that tracks each individual electric car in its lifetime, to detect every single flaw. Besides, the battery rental and replacement model is in our survey and research plan, to save customers from concerns regarding battery life."