New Energy Vehicle (NEV) Progress in China
Vehicle electrification is shaping the future of automotive mobility in terms of automotive power and propulsion. The market for New Energy Vehicles (HEV/PHEV/REEV/EV) as well as clean vehicle technologies is expected to grow steadily driven by government regulations mandating increased fuel economy and lower emissions. The fastest growth in this market will be in Asia Pacific, most notably China. The Chinese government has made its intentions clear on how important it considers the development and consumer purchase of hybrid and electric vehicles. The mandate is that by year 2012, vehicle manufacturers produce at least 500,000 units (or 5%) per year of their total output as hybrid and/or electric. All Chinese vehicle manufacturers must have at least one HEV or EV model in the market by the same year. Thus far China has invested over US$3.5 billion to stimulate the production of NEVs and the necessary infrastructure to support them.