The Chinese automotive industry is currently facing great challenges in several areas, including reducing dependence on fossil fuels, controlling greenhouse gases and criteria pollutants, as well as increasing international influence and competitiveness of Chinese brands. The Chinese government considers both energy-saving of conventional vehicles and new energy vehicles as key parts of energy saving, emission control, innovation and the low-carbon economy. As an emerging industry, new energy vehicles need to be supported and incentivized. However, that does not mean that efforts to improve the energy-saving capabilities of traditional vehicles should be relaxed. The goals of capping oil consumption and developing new energy vehicles must both be valued. Business enterprises need to keep their strategy and investment in line with the national development strategy, not simply rushing toward investment hotspots.

The biggest advantage of new energy vehicles is that they are emission free on the end-use side, which contributes directly to improving urban area air quality and public health. It is crucial for the emerging new energy vehicles to optimize performance, improve driving experience, and develop into a market-oriented industry. Vehicles with internal combustion engines will continue to exist and dominate the market in the short to medium term. Therefore it is important to promote the application of energy-saving technologies so as to reduce greenhouse emission from those traditional vehicles. As a developing country, China is promoting the urbanization of rural areas, creating large market potential for the automotive industry. Product updating will be achieved through technology and market competition, while policy needs to provide guidance from the perspective of the national strategy for energy-saving and emission reduction, pushing the automotive industry to peak its oil consumption and greenhouse gas and pollutant emission rates as soon as possible.

Dr. An Feng

Executive Director of  the Executive Committee, China Clean Transportation Partnership

Founder and Executive Director of iCET