Shanghai Metals Market reports that China is speeding up the development of new energy vehicles, as Beijing and other major cities have announced plans to replace gas-powered taxis with electric cars in the next few years, as part of an initiative to boost NEV sales and reduce pollution.
The Beijing Municipality Transport Commission said on October 30 that in the next two years, all newly registered or replacement taxis in Beijing have to be fully electric.
According to the report from the commission, more than 1,000 brand new fully electric taxis have already hit the road in Beijing. By the end of next year, the target is to switch 20,000 taxis to NEVs.
Shenzhen, the technology hub in South China, has also taken the lead among many other Chinese cities. Only fully electric vehicles will get registration as online ride-hailing taxis in Shenzhen. By the end of 2019, the city aims to complete the transition of gas-powered taxis to 100% electric ones, along with installing 18,000 new charging stations.
An industrial report focusing on petroleum consumption in China noted that China might completely phase out fuel vehicles by 2050.
These initiatives are being taken to promote NEV sales as well, especially after the hit on buying sentiments by reduction in government subsidies and muted economy.
Shenzhen-based BYD, the biggest plug-in electric car manufacturer in China, also saw weaker-than-expected sales in the NEV market and lower year-on-year profits in its NEV business, as demand remained sluggish.