China's tough fuel economy goals will push automakers
SHANGHAI -- You might think that China, desperate to ease its chronic air pollution, would encourage automakers to sell clean, hybrid-powered vehicles.
You would be wrong.
Under Chinese policy, only plug-in hybrids, "pure" electric vehicles and fuel-cell powered vehicles are eligible for government subsidies.
Conventional hybrids such as the Toyota Prius don't qualify. Because of the lack of incentives, no automaker produces conventional hybrids in China. Luxury brands such as Lexus and Audi import some hybrids, but they sell very few.
But the situation is changing. To meet tough fuel economy targets set by Beijing for 2020, automakers will have to add conventional hybrids to their lineups.
China now imports 60 percent of its oil, and air pollution has become a persistent problem in most Chinese cities. This month, Beijing warned that it would punish automakers that failed to meet fuel consumption targets that had been set in 2012.
Next year, automakers must cut their fleetwide fuel consumption to 6.9 liters per 100 km (34 mpg), and to 5.0 liters (47 mpg) in 2020. Companies that miss their targets would not be allowed to expand local production or increase exports to China.
Except for several luxury import brands such as Aston Martin and Porsche, automakers should not have a huge problem hitting their 2015 target.
Under Chinese policy, only plug-in hybrids, "pure" electric vehicles and fuel-cell powered vehicles are eligible for government subsidies.
Conventional hybrids such as the Toyota Prius don't qualify. Because of the lack of incentives, no automaker produces conventional hybrids in China. Luxury brands such as Lexus and Audi import some hybrids, but they sell very few.
But the situation is changing. To meet tough fuel economy targets set by Beijing for 2020, automakers will have to add conventional hybrids to their lineups.
China now imports 60 percent of its oil, and air pollution has become a persistent problem in most Chinese cities. This month, Beijing warned that it would punish automakers that failed to meet fuel consumption targets that had been set in 2012.
Next year, automakers must cut their fleetwide fuel consumption to 6.9 liters per 100 km (34 mpg), and to 5.0 liters (47 mpg) in 2020. Companies that miss their targets would not be allowed to expand local production or increase exports to China.
Except for several luxury import brands such as Aston Martin and Porsche, automakers should not have a huge problem hitting their 2015 target.
