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China to further regulate low-speed EV industry, curb new capacity
09 November 2018
China's top industry regulators, including the Ministry of
Industry and Information Technology (MIIT) and National Development
and Reform Commission (NDRC), issued a statement on 8 November
relating to further regulation of the low-speed electric vehicle
(EV) industry. According to the statement, provincial governments
are required to carry out a thorough investigation of enterprises
engaged in the manufacturing of low-speed EVs in their regions. New
capacity related to production of such vehicles will not be
approved. Applications for market entry of new models will not be
approved under the new regulations.
Significance: In China, a low-speed EV is
defined as a pure battery electric vehicle with a designed
travelling speed of less than 70 kilometres per hour. Pushed by
growing demand in rural areas and small townships and cities, the
low-speed EV market flourished in the past five years. However, the
industry has never been properly regulated due to lack of
standards. Low-quality products also lead to surging numbers of
road accidents. Such vehicles are also believed to inhibit the
growth of the sub-compact EV segment. The Chinese regulators'
determination to clamp down on the low-speed EV industry has also
put an end to manufacturers which intended to bring unique products
to the market. A typical case is CHJ Automotive's SEV project. The
auto start-up company decided to halt its project of the SEV, a
mini-size low-speed EV which it debuted in Europe, due to lack of
regulation and subsidies to support the market adoption of such
vehicles in China.
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