The overarching theme is the importance of innovations that are created within the emerging economies. More specifically, the article looks at the development of various alternatives to vehicles powered by the internal combustion engine, new energy vehicles (NEVs) within China.
The broad strategic approach of two sectors within the NEV sector in China, the pure electric vehicle (EV) and the low-speed electric vehicle (LSEV) sectors, are compared using recent data and conclusions are drawn.
The EV sector is viewed by the central government as a key sector for China’s future industrial growth and is heavily supported. In contrast, the LSEV sector receives no support from central government and yet clearly outstrips the sales of EVs. The article argues that the latter’s success is a reflection of the LSEV sector’s focus on business model rather than technological innovation.
The article highlights the importance of monitoring innovations that come from within emerging economies and also illustrates the benefits that can come from commercially focused innovations rather than those based on technology.
Finding alternatives to vehicles powered by fossil fuels is one of the most important challenges facing the world today. This article looks at the search for one alternative and examines its implications.
What is original/of value?
The article examines a business sector that is peculiarly Chinese and yet has potential implications far beyond China. It also contains recent sales figures and other data collected directly from sources in China.
Tagscherer, Ulrike (2012). Electric mobility in China: a policy review. Fraunhofer ISI discussion papers innovation systems and policy analysis 30, 18 p.
In 2009, the annual car production in China was 13.8 million cars, a year-on-year increase of more than 48% (Sun 2010: 3). In 2010, automobile production reached 18,264,700 units, an increase of 32.4% compared with 2009. China’s share of the global market for car sales amounts to 20%, up from 13% (Sun 2010: 4). China became the biggest car market in the world in 2010 (China Association of Automobile Manufacturers CAAM 2011). Considering the car ownership per capita, there is still a huge development potential for the Chinese car market. And it is exactly this huge development potential which makes analysts believe that China will become the largest market for electric vehicles in the future.
This belief is shared by the Chinese government, and the government has implemented or drafted several different policies and rules to support and speed up the development of electric vehicles. At the highest policy-making level, the Chinese government adopted the development of electric vehicles in its highest priority national plan, the 12thFive-Year Plan (12 FYP 2011-2015). At the same time, the electric vehicle industry has been selected as one of the seven strategic emerging industries by the National Development and Reform Commission (NDRC). This again has also been manifested in the 12 FYP. The overall goals foresee a rapid development of electrification of cars in China and by 2015 the number of electric cars on Chinese streets should reach 1 million.
The following analysis will take a deeper look into the different policies that are behind these developments in order to increase the understanding of the opportunities and challenges that lie ahead. Hence, contributing to an evaluation of the current development in this field is one of the major goals of this working paper.
As in all other countries, there is no single policy dedicated to electric mobility in China today. Yet there are many different policies from different ministries and agencies with different main targets which influence the development of e-mobility or electric vehicles to a certain degree. The following review looks especially at the impact of these different national policies on the development of electric vehicles and tries to analyze the relations between these policies as far as this is possible from an outsider’s perspective.
The current strategy of the Chinese government concerning the development of electric vehicles is supported mainly by three major policy fields: support for R&D, support for the related industry, and support for private and public consumption. The majority of the policies are in fact industrial policies and they have been adopted by the highest levels of government.
- Full text available at EconStor, the open access server of the German National Library of Economics
- Discussion papers “ Innovation systems and policy analysis ”
Hoversten, Shanna, “Electric vehicles: market opportunities in China” (2010). CMC senior theses. Paper 1.
Electric vehicles (EVs) offer an exciting opportunity in China both in terms of the potential to build a domestic manufacturing base and the potential to create a strong domestic market for the product. The Chinese nation stands to benefit from both supply-side and demand-side promotion due to the economic stimulus from EV manufacturing and export, the environmental benefits of reduced air pollution and reduced greenhouse gas emissions, and the energy security benefits of transitioning away from foreign oil dependence. The Chinese have several advantages when it comes to stimulating EV industry development and EV deployment, including: leadership in battery technology, great potential for cost competitiveness, an enormous and emerging number of new car buyers, and high level government support. Yet a number of challenges must be taken into account as well, including: shortfalls in overall automobile R&D spending, consumer concerns about Chinese cars’ safety and reliability, enhancing the appeal of the Chinese brand, and heavy national infrastructure demands. This paper will seek to examine the opportunities and challenges associated with EV deployment in China and identify industry actions and policy measures to facilitate the process.