Abstract:

China announced its New Energy Vehicle (NEV) mandate, part of its plan to sell 4.6 million electric vehicles by 2020 and ban cars with traditional internal combustion engines over the long term. China’s NEV mandate, drawing inspiration from California’s Zero Emission Vehicle mandate, sets a quota for the number of zero-emissions vehicles that carmakers must sell, with each getting a certain number of credits, depending on characteristics such as range, energy efficiency and power. The policy establishes NEV credit targets of 10% of the conventional passenger car market next year and 12% in 2020.