FOR IMMEDIATE RELEASE
China To Benefit From Emerging Global Electric Vehicle Demand, Though Challenges Remain
BEIJING, CHINA, April 20, 2011 --/WORLD-WIRE/-- Driven by four global megatrends—reducing CO2 emissions, oil concerns, growing congestion, and rapid technology advances—countries worldwide are focusing strongly on vehicle electrification with China emerging as an important test-bed for innovation, according to a new study financed by the World Bank.
The study analyzes China’s New Energy Vehicles Program, as well as the Ten Cities, Thousand Vehicles Program, which was launched by the Chinese government in 2009 to stimulate electric vehicle development through large pilots, initially in ten cities, and now in 25 Chinese cities. The findings are based on in-depth research and interactive sessions with government, municipal and industry leaders and were discussed at a workshop jointly hosted by Beijing Municipality and the World Bank. “The China New Energy Vehicles Program: Challenges and Opportunities “ study was conducted by consulting firm PRTM, with additional support provided by the Electrification Coalition (EC), International Council on Clean Transport (ICCT) and the Innovation Center for Energy and Transportation (ICET).
The study estimates that global sales of plug-in vehicle will likely comprise 10 percent of new vehicle sales by 2020. This rapid growth is expected to usher in a new global electric vehicle era estimated to be worth US $250 billion worldwide in ten years creating unprecedented opportunities across the transport sector. Yet, China and other countries face steep challenges in promoting electric vehicles.
“From policy to technology to new business models, China is innovating on all the building blocks needed to successfully deploy electric vehicles,” said Ede Ijjasz, Sustainable Development Manager for the World Bank in China and Mongolia. He continued, “China’s plan for US$15 billion in government investment in vehicle electrification is remarkable and second to none. However, many regions worldwide are now moving quickly to realize the opportunities of electrified mobility. We hope that our findings can help other countries as well, as they move toward a more sustainable transport growth model.”
According to Oliver Hazimeh, Director and Head of the Global e-Mobility Practice at PRTM, “The shift from combustion to electric vehicle technologies presents an opportunity to rethink mobility strategies worldwide, and to create a new generation of mobility options.” He continued, “We will see significant technological and business model innovation as we move toward a new urban mobility paradigm.”
The team’s analysis of electric vehicle policy, technology and commercial models revealed the following:
Strong Chinese policy momentum: Currently, Chinese electric vehicle policies promote EV use through purchase subsidies, which is not unusual at this stage of market development. Looking ahead, policies will need to support institutional and technology innovation, vehicle-charging infrastructure and manufacturing capacity.
Katherine L. Waite
Global Public Relations Director
Where Innovation Operates
M +1 617.821.2282