Abstract:

Cities in China are using a broad range of incentives to electrify the commercial vehicle fleet. This report reviews major policies for new energy commercial vehicles (NECVs) in 10 cities and the relevant national policies that guided city actions and then compares these incentives with market performance in 2020. Widely used tools included operation subsidies, preferential road access, restricting the use of conventional fuel trucks on heavy-pollution days, and phasing out road transportation certificates for conventional fuel taxis and other commercial cars. The experiences of these cities provide valuable lessons on how to boost NECV adoption in China and elsewhere. Among the recommendations: Consider putting additional requirements on vehicle owners and users to qualify for government fiscal or other support. The review also found that central policies were the main driver for the adoption of new energy medium- and heavy-duty vehicles (M&HDVs). Thus, China could look at further encouraging local policies to accelerate the uptake of these vehicles.