China Makes Concessions to Germany on E-Car Quotas

Angela Merkel  und Li Keqiang
Picture source: Rainer Jensen/dpa

Beijing has decided to relax its ambitious quotas for electric and hybrid car production after holding high-level discussions with Germany, Handelsblatt has learned from three sources.

Chancellor Angela Merkel and Chinese Premier Li Keqiang discussed the issue in a telephone conversation, and Berlin had also sent a high-level delegation to Beijing for talks on a compromise. China’s ministry of industry is now drawing up plans to ease the quotas with a result expected in the coming week.

Beijing had originally planned to require automakers in China to shift 8 percent of their production to electric and hybrid vehicles in 2018. The quota would then increase to 10 percent the following year and to 12 percent the year after that.

German automakers complained the quotas would put them at a competitive disadvantage in China because they couldn’t meet the targets so quickly. The Chinese automobile industry association CAAM had also warned Beijing that some Chinese automakers couldn’t meet the quotas that fast.

 Read the full report in Monday’s issue. 

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