Global automakers are concerned over the NEV (new energy vehicle) targets recently set forth by the Chinese government.
Combating air pollution, China has set proposed NEV standards that mandate for at least a fifth of auto sales be comprised of electric and plug-in hybrid cars by 2025. But carmakers worry that such objectives will be tough to meet and would hinder their business, especially given that the government will cut back subsidies on new vehicle purchases by 2020. These incentives have been instrumental in supporting the growth of the industry.
Global automakers have urged China to delay and/or soften the planned quotas for NEVs as early as July.
Today at a company gathering in Shanghai, General Motors Chairman and CEO Mary Barra announced that the mandated limits will require government support and that customer demand should be driving the switch to NEVs rather than government initiatives.
“It’s best when, instead of being mandated, customers are choosing the technology because it meets their needs”, said Barra, while adding that GM will work to “the timetable of governments”, but that consumers also needed to be convinced.