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China's NEV industry may see explosive growth in 2016

Source: Shanghai Securities News | Date: Dec. 30

  • Five governmental departments, including the Ministry of Industry and Information Technology (MIIT) and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), recently released a number of national standards governing battery charging services for electric vehicles (EVs).

  • Schedule to take effect on Jan. 1, 2016, these new standards are expected to boost the charging equipment market and related companies, industry insiders say.

  • The lithium battery segment is expected to see fierce competition in the coming year as more foreign companies are building plants here. The MIIT recently implemented an administrative policy that sets rules and requirements for companies to do business in this segment.

  • The Chinese government has also decided to standardize charging outlets so that charging facilities in use are compatible and safe. Jia Xinguang, an auto industry analyst, points out that the promotion of new-energy vehicles (NEVs) has been hindered by charging equipment's incompatibility and inconvenience for years, and thus, the government's new standards governing battery charging services come at the right time to fix these problems. "Once compatible charging outlets are ready, we will be able to charge our EV cars as conveniently as we usually do with refueling our petrol cars in gas stations," he said, "this will encourage more customers to buy NEVs." Supported by the government's multiple incentive policies, the NEV industry is likely to see explosive growth in 2016, with sale expected to rise 80% on an annual basis to 450,000 units.