China announces that it will force foreign automakers to start manufacturing electric vehicles in 2019. Though the start date is later than the original timing of 2018, the policy marks a firm commitment from the government to back the EV industry.
The directive from Beijing includes gradually escalating point-based quotas for pure EVs, plug-in hybrids and fuel cell-powered cars. The quota will amount to the equivalent of 10% of all vehicles produced initially before being pushed higher over time.
"Overall, it provides further support for the EV industry in China. EV sales will continue growing quickly, despite the phase-down in direct subsidies," notes Bloomberg New Energy Finance Colin McKerracher on the development.
Major automakers already have joint venture partners in China, but are closely watching to see if direct manufacturing will be allowed in some free trade zones.
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