China To Relax Quotas for German E-Cars

  • Why it matters

    Why it matters

    The deal to lessen the impact of Chinese e-car quotas on German manufacturing will boost German companies at a time they are worried about the possibility of losing business in the United States.

  • Facts


    • According to a Chinese government plan, 40 percent of all Chinese cars should be electric by 2030.
    • This will require 15 million new electric cars to be sold annually.
    • China published planned new rules in September, stipulating that a percentage of carmakers’ sales would have to be of electric cars but these targets have now been postponed, and softened.
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Electric Vehicles and Charging Infrastructure As China’s Poisonous Coal Capital Spends Millions to Go Green
China wants to boost e-car production but car makers are alarmed at ambitious targets. Source: Bloomberg

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.

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