Beijing allows foreign automakers to form new EV ventures
Beijing will allow foreign automakers to establish new joint ventures with local companies to produce electric vehicles to spur higher production of low and zero emissions vehicles.
The partnerships will be restricted to building battery-powered EVs, according to revised directives on foreign-invested industries released last week by the Ministry of Commerce.
Foreign automakers will be barred from owning more that 50 percent of the EV partnerships, according to the directives, which will take effect on July 28.
Under current Chinese policy, foreign automakers must form joint ventures with local companies if they want to build vehicles in China.
In addition, a foreign automaker is barred from establishing more than two such joint ventures. The policy also caps foreign interest in these partnerships to 50 percent.
For years, Beijing has encouraged automakers to boost EV production and sales.
Last month, it approved Volkswagen Group’s request to partner with state-owned Chinese automaker Jianghuai Automobile Co. to assemble battery-electric EVs in the east China city of Hefei.
Volkswagen also has two joint ventures in China with SAIC Motor Corp. and China FAW Group Corp.
Foreign automakers will be barred from owning more that 50 percent of the EV partnerships, according to the directives, which will take effect on July 28.
Under current Chinese policy, foreign automakers must form joint ventures with local companies if they want to build vehicles in China.
In addition, a foreign automaker is barred from establishing more than two such joint ventures. The policy also caps foreign interest in these partnerships to 50 percent.
For years, Beijing has encouraged automakers to boost EV production and sales.
Last month, it approved Volkswagen Group’s request to partner with state-owned Chinese automaker Jianghuai Automobile Co. to assemble battery-electric EVs in the east China city of Hefei.
Volkswagen also has two joint ventures in China with SAIC Motor Corp. and China FAW Group Corp.
