Dual credit plan will boost NEV development in China

Analysts say international carmakers may have to work harder to meet the requirements than Chinese brands, which have a few years' head start producing electric cars.

Volkswagen AG, the most popular international carmaker in China, said it will promote the development of the new energy vehicle market together with its Chinese partners.

The German carmaker sells more than 4 million vehicles a year in China, which means it must garner 560,000 points by selling at least 160,000 electric cars a year in 2021.

It will be a difficult task to finish because it will take at least months this year to roll out its first locally made electric model, the ID 3, at its joint venture SAIC Volkswagen.

Stephan Wollenstein, CEO of Volkswagen Group China, said the carmaker is expecting to sell 1.5 million new energy vehicles a year in the country by 2025.

Volkswagen is acquiring 26 percent of electric vehicle battery maker Gotion High-Tech for around 1 billion euros (US$1.12 billion), to become its largest shareholder.

GM, another best-selling carmaker in China, did not comment on the new credit requirements by press time.

But in an interview earlier this year, GM China CEO Julian Blissett said the automaker would introduce its new electric vehicle platform into China and work with more local suppliers in the production of electric vehicle parts.

The US automaker aims to have 20 new energy vehicle models available to Chinese consumers by 2023.

According to statistics released by the Ministry of Industry and Information Technology last year, 75 out of 141 passenger carmakers operating in China did not meet the country's standards in 2018.

Most of those who failed were international carmakers or their joint ventures in the country, including SAIC GM, Beijing Hyundai, Changan Ford and FAW Toyota.