China aims to achieve annual production and sales of two million new energy vehicles by 2020, as the country ramps up efforts to expand its green energy sector and reduce dangerous levels of air pollution in its major cities.
New energy cars are defined as vehicles powered by alternative sources of energy. They include hybrid, pure electric vehicles, fuel cell electric vehicles and other alternative energy-powered cars.
In addition, China will strive to cultivate some of the world's top-ten new energy vehicle companies by 2020, according to a long-term development plan for the automotive industry released yesterday by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology.
Under the plan, new energy vehicles will account for more than 20% of China's automobile production and sales by 2025.
The Chinese government plans to increase financial and tax support for new energy vehicles companies in order to achieve the objective. It will also improve foreign investment regulations and liberalize the exiting cap on foreign ownership stakes in joint venture enterprises.
China will provide incentives to enterprises' research and development spending, and strengthen tax benefits for consumers purchasing new energy vehicles.
The government will also consider significant incentives for those engaged in the development of key parts and components, smart and connected cars and other fields that will be crucial for tomorrow's auto industry.
China's policy bank, the Export-Import Bank of China, will provide capital and other assistance to help Chinese new energy vehicle companies to go global, according to the statement.