It’s no secret in the automotive world that carmakers are grappling with government plans to shift away from fossil fuel powered cars to newer, less polluting technology applications in transportation.

New Energy Vehicles (NEV) as China terms it will be on top of the automotive agenda in the coming year as it sets ambitious targets for this type of vehicles. Following the developments in UK and Europe where there will be a ban new petrol and diesel cars from 2040, China has also begun studying when to set a cut off timing for the production and sale of cars using traditional fuels.

Byd chairman and founder Chuan-fu Wang

In view of the future direction and implementation by the Chinese government, domestic automaker BYD expects the country’s shift to cleaner new-energy vehicles (NEV) to be complete in just over a decade. BYD Chairman Wang Chuanfu predicts that all vehicles in the country will be “electrified” by 2030, which could range from full electric cars to mild hybrids.

China has set goals for electric and plug-in hybrid cars to make up at least a fifth of its auto sales by 2025 in a bid to combat air pollution and close a competitive gap between its newer domestic automakers and their global rivals.

However, some automakers in China are not so sure of meeting the deadlines and hence appear to be less optimistic about the pace of the industry’s shift to electrification.

General Motors says that the shift to NEVs would only work with continued government support and that consumers should be the ones driving demand rather than government mandate.  Interestingly, China is phasing out subsidies that have supported makers of NEVs.

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