Beijing launches new program for electric vehiclesNovember 14, 2012
Electric vehicles may get a boost from new program
The Chinese government has put a strong focus on electric vehicles for the future of the country’s transportation. These electric vehicles would bring several environmental benefits to the country and boast of strong economic potential. The problem, however, is that consumers have not responded well to the efforts coming from native and foreign automakers. Many consumers consider electric vehicles to be too expensive or not worthwhile of investment. In Beijing, a new initiative is being launched that may help bolster the flagging market.
Beijing program targets mass buyers rather than general public
China is no stranger to ambitious electric vehicle schemes. The country has seen several of these plans take form and falter over the years. Many of these plans fail because they are either too limited in scope or are poorly executed. Beijing will serve as host to a new plan concerning electric vehicles that is more finely crafted than its predecessors. Instead of targeting the general public, this plan will target mass buyers, such as taxi fleet operators and city agencies.
Mass buyers could see major benefits through the adoption of electric vehicles
Mass buyers typically see high costs related to the operation of large fleets of vehicles. Not only do these fleets produce a large amount of carbon emissions, they also consume fuel at a high rate. This fuel consumption is beginning to translate into serious financial risk for these parties as oil prices rise and the country’s access to this oil drops. Beijing officials believe that the new plan will highlight the economic potential of electric vehicles, thus increasing their attraction to companies and organizations that had previously relied on traditional vehicles.
Program not likely to be the last of its kind in China
Through the program, Beijing will supply interested parties with a financial incentive to adopt electric vehicles. This incentive will likely come in the form of tax credits that are provided to adopters of electric vehicles, but whether these incentives will be popular has yet to be seen. China is eager to push for improvements to the country’s electric vehicle business, however, so the Beijing program will not likely be the last of its kind in the country.