Abstract:

China’s Ministry of Industry and Information Technology (MIIT) finalized the New Energy Vehicle (NEV) mandate policy on September 27, 2017. The NEV mandate in China is a modified version of California’s Zero Emission Vehicle (ZEV) mandate, with goals of promoting new energy vehicles and providing additional compliance flexibility to the existing fuel consumption regulation. This policy applies only to passenger cars and will formally take effect on April 1, 2018. The rule specifies NEV credit targets for two years - 10% of the conventional passenger vehicle market in 2019 and 12% in 2020.  

In this update, the document provides a general introduction to working of NEV mandate policy, evaluates the potential impacts of this policy and highlights the major differences between the final rule and the interim proposal.