State-run China Automotive Technology and Research Center (CATARC) has suggested to open electric-vehicle (EV) manufacturing to non-automotive companies, in order to spur manufacturers to grow like Californian EV-maker Tesla.
CATARC recommended the issuance of two to three special licenses for EV manufacturing. Wang Cheng, researcher at CATARC, proposed that, depending on suitable candidates, the licenses could be increased to five.
“Production licenses are hard to come by when China is trying to consolidate the industry,” said Steve Man, Hong Kong-based Asia automotive analyst at Bloomberg Industries. “This is a chance for China to take a global lead in EVs and transform itself into a technology leader in a mature auto industry that has traditionally been led by the West and its neighbors to the east.”
“Traditional automakers are under pressure to maintain growth and have not devoted 100% to EVs. The success of Tesla inspired both the industry regulators and players in the sense that a non-automaker can really make EVs work,” added Wang.
The research centre is helping the government to shape the country’s automotive policy. The recommendation will be discussed among industry regulators before submitted to the State Council.
China aims to reduce its reliance on fossil fuels and decrease air pollution by promoting private purchases of new energy vehicles (NEV), which include fuel cell vehicles, plug-in hybrids, and battery EVs.