China's new energy vehicle industry on fast lane for growth

Economy
China's new energy vehicle industry has seen rapid growth in the past few years, with growing sales and an improved industry ecosystem.

XinhuaUpdated: September 2, 2017
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China's new energy vehicle (NEV) industry has seen rapid growth in the past few years, with growing sales and an improved industry ecosystem, according to an industry association.

Production and sales of NEVs have surpassed 1 million units so far, with an annual growth rate of over 200 percent, said Dong Yang, vice director of China Association of Automobile Manufacturers (CAAM).

With more than 50 percent of the world's NEV production, sales, and ownership in 2016, China is now a global leader in NEV development.

Domestic battery makers, motor producers, and other enterprises in the supply chain have become internationally significant suppliers, with more than 70 percent of the global shipments of NEV batteries coming from China, Dong said.

Public charging facilities within China have surpassed 180,000, with their coverage increasing in residential areas, along highways, and in other public space.

Companies operating NEV charging have also emerged with innovative business models, while favorable government policies have made NEVs cheaper and the licensing procedures simpler, he said.

Some 507,000 NEVs were sold in China last year, the most in the world for a second year and up 53 percent from 2015, CAAM data showed.

According to an official plan on auto industry development, China will see NEV output and sales hit two million annually by 2020, about four times the current level.