China May Stretch Out Push for EVs

China is pondering options that would slow the pace of proposed government sales quotas for electrified vehicles.

A draft policy unveiled last September would require carmakers to achieve sales of plug-in hybrids and all-electric vehicles equal to 8% of their total deliveries in 2018, 10% in 2019 and 12% in 2020, Reuters reports. The news service estimates so-called “new-energy” vehicles accounted for only 2% of car sales in China last year.

Carmakers say the government’s goals are too extremely, and attempting to achieve them would put drain their financial resources. Producers also question whether government aid will materialize to build the battery charging infrastructure needed to support the demanded sales volume.

Sources tell Reuters one option being considered would trim the sales quotas to 6% next year, 8% in 2019 and 10% in 2020. Another alternative would be to simply delay each current target by one year.

Two key government agencies differ in their view of the quotas, according to the news service. The National Development and Reform Commission considers the need to electrify critical and backs the original quotas, according to Reuters. The Ministry of Industry and Information Technology, which regulates carmakers, prefers a credit trading system suggested by manufacturers that would enable one to offset a shortfall by buying credits from a more EV-centric carmaker.

The latter scheme is similar to the practice among carmakers in the U.S. market of buying and selling fuel economy credits from each other to satisfy federal fuel economy standards.