China’s Leapfrog to New Electric Vehicles

Abstract

In 2010, the Chinese government initiated a leapfrogging strategy to jump-start technological upgrading in the country’s automobile industry and facilitate the transition to electric mobility based largely on indigenous innovation. This move was driven by escalating environmental pressures as well as resource constraints and inspired by the prospect of greatly strengthening the technological capabilities and competitive positions of domestic automobile manufacturers. The aim was to establish an early lead in the field of electric vehicles featuring high electric power ratios and power grid connectivity. The paper identifies this leapfrogging attempt as a strategic project initiated by the central government and organized in a top down manner. It sheds light on the supporting public policy framework and conducts a preliminary review of the strategy’s accomplishments until mid-2012. By way of an in-depth examination of guidance policies and incentive structures, the paper highlights the challenge of coordinating promotion plans across the country.

Appendices

Appendix 1: Buying Incentives for Electric Vehicles

See Tables 1 and 2.

Table 2 Overview of purchasing subsidies granted for different vehicles (amounts in RMB)

Appendix 2: Classification of Technology Maturity

See Table 3.

Table 3 Classification for product and technology maturity

Appendix 3: Timeline for the Planned Transition to Electric Mobility

Phase I (2008–2010)

• Launch EV pilot projects in public services of large and medium-sized cities.

• Completion of a large-scale pilot project involving 595 battery electric vehicles during the 2008 Olympic Games in Beijing.

• Initiation of the 10 Cities 1000 Vehicle Programme in 2009 as large-scale pilot promotion project in urban centers across the country.

Phase II (2010–2015)

• Realize the production of hybrid vehicles on an industrial scale.

• Put a cumulative combined total of 500,000 BEVs and PHEVs on the road until 2015.

• Launch large-scale pilot projects for the commercialization of small-size battery electric vehicles

• Initiate small-scale pilot projects for the evaluation of fuel-cell electric vehicles in public services.

• Conduct research and development activities with regard to fuel-cell electric vehicles as the next generation of pure electric vehicles and establish a research and development platform in this area.

• Provide support to science and development activities in order to facilitate the increase of the proportion of pure electric vehicles to all vehicle sales to level of 1 %.

• Promote comprehensive research and development efforts focusing on lithium ion batteries.

• Intensify technology support for the modularization of vehicle batteries as cornerstone of indigenous innovation efforts.

• Reach a breakthrough in the mass production of vehicle batteries.

• Set up 400,000 charging posts and 2,000 stations for battery charging and replacement in over 20 pilot cities and border areas.

Phase III (2015–2020)

• Continue to promote the large scale industrial production of pure electric and commence work on the next generation of pure electric vehicles.

• Increase the combined BEV and PHEV population to 5 million units until 2020.

• Achieve a combined production capacity for BEVs and PHEVs of 2 million units by 2020.

• Launch the production of the next generation of vehicle batteries on an industrial scale.

• Optimize the basic support infrastructure for electric vehicles.

• Enhance vehicle-network integration.

• Continue to provide technology support to promote the popularization of all types of electric vehicles until 2020.

Based on SC, 2012.