Recharging China’s

Electric Vehicle Policy

Tao Wang | Oct 30, 2013

Resident Scholar, Energy and Climate Program

About Carnegie-Tsinghua Center

• The Carnegie Endowment was founded in 1910, and established the

Carnegie-Tsinghua Center in 2010 with the International Relations dept. of

Tsinghua University

• “The Global Think Tank” is headquartered in D.C., with five centers in

three continents, and an Indian Center coming in 2013

• A private, nonprofit organization dedicated to advancing cooperation

between nations. Its work is nonpartisan and dedicated to achieving

practical results

• Energy and Climate Program aims to 1) enhance mutual understanding; 2)

promote cooperation; 3) provide independent and constructive policy

analysis for energy and climate policies

Outline

• International efforts on Electric Vehicle development

• Policy comparison among China, Germany and the US

• Lessons learned in pilot cities

• Policy recommendations

Benefits from EV Development in China

• Energy security

• Environmental Protection

• Climate Change Mitigation

• Industrial Growth (leapfrogging in automobile industry)

Global Attention to Electric Vehicles (EVs)

Total Investment in Public EV Infrastructure, 2010-13e ($m)

160

478

818

150

379

450173

272

98

105

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2010 2011 2012e 2013e

Japan

Israel

US

Europe

China

45%

171%

363%

95

437

1,186

1,715 Global EV Sales, 2012 (units)

• Source: Bloomberg New Energy Finance

• Source: International Energy Agency

Pilot Cities in China

Adapted from China’s Electric Vehicle Policy and Industry Plan, Xu Changming, State Information Center

2010 年 6 月， 6 个私人补贴试点城市：

北京、深圳、上海、杭州、合肥、长春6 个私人补贴试点城市

Policy Comparison: Targets & Plans

　 China Germany US

Targets

by 2015 500,000 BEVs & PHEVs N/A1 million BEVs by 2015, back off

by 20205 million BEVs & PHEVs by 2020 with $16 billion investment

(EU) 5 million BEVs & PHEVs by 2020 EUR 500 million in R&D funds, 1 million BEVs & PHEVs by 2020

after 2020

N/A 6 million BEVs & PHEVs by 2030, sound electric network in urban area by 2050

N/A

Industry development plan

Special Plan of EV Technology in 12th Five-year Plan

National Electromobility Development Plan.Battery, Electric drive, Smart Grid

American Recovery and Reinvestment Act (ARRA ’09). Batteries

Energy Saving and New Energy Vehicle Industry Development Plan 2012-2020

showcase projects & flagship projects

American Clean Energy and Security Act (ACES ’09). Smart-grid technology

　 EV Everywhere & Working Place Charging Challenges. charging stations

Policy Comparison: Incentives

China Germany US

Incentive Mechanisms

Purchase subsidies Road tax exemptionTax credit for cars and charging stations

free electricity Company car taxation Free parkingpurchase limit exemption （？）

Special parking places and traffic lanes

Free registration

free installation of charging poles

access to bus lanes Access to HOV lanes

Emission-free Emissions-free

Other measures

Public procurement of taxi and bus fleets

Public procurement planLow-interest bank credit Fleets fuel efficiency

Insurance

Electric Companies Car Dealers

Policy Comparison: Sales

China Germany America

EV Sales in 201212,800 BEVs & PHEVs (11,400 BEVs)

Less than 3,000 BEVs & PHEVs

53,000 BEVs & 473,000 PHEVs

Total Car Sales 19.3 million 6 million 14.5 million

Percentage 0.06% less than 0.1%0.3% for BEVs3.3% for PHEVs

Lessons Learned in Pilot Cities

• Lagged innovation results in an innovation capacity and technology gap

• Insufficient impetus for Chinese automakers to focus on electric vehicles

• Lack of infrastructure and incentives to use electric vehicles instead of conventional ones; purchase subsidies not in use

• Relying too much on public finance support; lack of a sound business model

• The government will provide subsidies for public transportation and official vehicles.

• These subsidies will decrease by about 10% in 2014, and then 20% in 2015encourage automakers to reduce prices of these vehicles in the longer term

• In addition, 30% of new vehicles for municipal fleets must be electric.

• Importantly, 30% of these newly subsidized purchases must be transacted with companies outside of the local regiondiscourage protectionism

Policy Recommendations:Open up the electric vehicle market to leading international automakers

Policy Recommendations:Promote electric vehicle use in commercial operations with priority

Policy Recommendations:Create an environment that encourages electric vehicle use

Average Annual Total Cost of Ownership

Policy Recommendations:Develop a self-sustaining business model

Thank you! twang@ceip.org