- China announces that it will force foreign automakers to start manufacturing electric vehicles in 2019. Though the start date is later than the original timing of 2018, the policy marks a firm commitment from the government to back the EV industry.
- The directive from Beijing includes gradually escalating point-based quotas for pure EVs, plug-in hybrids and fuel cell-powered cars. The quota will amount to the equivalent of 10% of all vehicles produced initially before being pushed higher over time.
- "Overall, it provides further support for the EV industry in China. EV sales will continue growing quickly, despite the phase-down in direct subsidies," notes Bloomberg New Energy Finance Colin McKerracher on the development.
- Major automakers already have joint venture partners in China, but are closely watching to see if direct manufacturing will be allowed in some free trade zones.
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- Related ETF: CARZ.
- Now read: Tesla Without Incentives
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