Published on August 28th, 2014 | by James Ayre6
China Considering $16 Billion For New EV Charging Infrastructure
August 28th, 2014 by James Ayre
China’s fledging EV charging infrastructure may soon be getting a huge boost, based on recent rumblings in the industry. Reportedly, the Chinese government is considering providing as much as 100 billion yuan ($16 billion) in funding to help the expansion of the country’s — currently quite limited — charging infrastructure.
According to the rumors, an announcement should be forthcoming relatively soon — with the specifics of the policies involved. Presumably, one of the main motives behind the funding will be to increase the rate of EV adoption in the country. Something which the Chinese government has been working on for a few years now.
Given that the country is actually home to a number of notable EV companies — perhaps the most notable of which is BYD — the move seems timely, especially as a means to help address the monumental air pollution problem that the country is facing.
“Charging infrastructure and EV growth is a chicken-and-egg situation,” stated Ashvin Chotai, managing director of researcher Intelligence Automotive Asia. “It’s got to be a gradual process to scale up both EV sales as well as charging infrastructure.”
Bloomberg provides more on related initiatives:
Among recent government initiatives, China will exempt new energy vehicles — defined as electric cars, plug-in hybrids and fuel-cell vehicles — from a purchase tax starting next month, and has ordered government departments to buy such vehicles for their official fleets.
Supporting a strategic and emerging industry like new-energy vehicles is a “win-win” for industrial development and environmental protection, the central government said last month in the statement announcing the waiver of the purchase tax. Developing new-energy autos is important for spurring innovation, promoting energy savings and reductions in emissions, and will help to drive domestic demand and nurture new avenues of growth, according to the notice.