Report: China Preparing to Spend $14.7 Billion on Alt Energy Vehicles Through 2020
By John O'Dell August 4, 2010
The Chinese government has said repeatedly that it intends the country to become the world leader in development, production and use of electric cars and other alternative energy vehicles.
China already is designating highway lanes for electric cars, now it plans to start filling them.
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Now comes a report that it is preparing to put its money behind that promise.
The Shanghai Securities News says China's Ministry of Industry and Information Technology has prepared a new 10-year plan, slated for approval by the State Council later this month, that sets aside 100 billion yuan (U.S. $14,7 billion) for development and adoption of alternative energy vehicles.
The unattributed news report says that China hopes to produce 500,000 alt-energy vehicles annually starting in 2011.
Analysts at IHS Global Insight say this proposed expenditure is in addition to about $3 billion in already-approved hybrid and plug-in electric vehicle subsidies for private and commercial purchases and that China also is increasing its focus on development of a national EV charging network.
Finding a way to being down the premium cost of alternative energy vehicles remains a challenge, though - a situation that bedevils Detroit and Tokyo as much as it does Beijing.
China's got lots of obstacles to overcome in its drive to dominate the EV industry - not the least of which is improving the quality and fit-and-finish of domestically built cars and trucks. but we hope our own automakers, and government policy makers, are paying attention.
If China realizes its ambitious plans while we play politics and marginalize alternative energy vehicles - EVs, PHEVS and, yes, fuel-cell electric vehicles - as too pricey and too complicated, the next big threat to the U.S. auto industry will be coming from the Middle Kingdom.
John O'Dell, Senior Editor
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