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Alternative energy vehicles will dominate purchase-restricted cities

Chinese electric vehicles achieve fast growth in the past years, attracting the whole world’s attention. To further improve the industry’s developments, an exposure draft to substitute oil-consumption management and alternative energy vehicles’ points-based management is expected to be promulgated in the first half of year. In my opinion, the popularization of the new regulation shows that the government will demand all auto companies to produce and sell alternative energy vehicles in a given proportion, which should be paid great attention.

According to State Council, any city should not carry out purchase-restricted policy. Currently, there are seven domestic cities carrying out purchase-restricted policies on traditional energy auto, which will accelerate the pace of alternative energy vehicles’ domination on city market. Statistics data shows that seven purchase-restricted cities have auto market of 1.5m to 2m units. Besides, the domestic bus market has a size of 100,000 units per year, which opens another market for electric vehicles. In the meantime, taxis and municipal vehicles supported by public finance will also provide demands for electric vehicles. Therefore, I believe the popularization of electric buses is practicable and necessary.

However, governments will also face great challenges. Firstly, the precise examination on fuel consumption and oil emission is necessary for the promulgation of regulation. Secondly, if local protection still exists, the vehicle market will be harmed.