China needs to further optimize NEV consumption to provide support for stable auto consumption and economic growth, according to an article in Economic Daily.

(Image credit: CnEVPost)

China has put in place many policies to support the new energy vehicle (NEV) industry, and a new article in a state-owned newspaper argues that there is still room for more.

China's positive momentum in NEV consumption is providing strong support for overall auto consumption, but the country should also empower its residents to consume NEVs, the state-owned Economic Daily said in an opinion piece today.

The country needs to take effective measures to adapt to potential consumer demand and further optimize NEV consumption to provide support for stable auto consumption and economic growth, the article said.

In tier 1 and tier 2 cities, there should be policies to guide early NEV products out of the market, encourage consumers of traditional internal combustion engine (ICE) vehicles to replace them with NEVs, and increase NEV license plate quotas, the article suggests.

In third- and fourth-tier cities, the government should improve the convenience and affordability of NEV use through measures including dedicated parking spaces, improved charging networks, and reduced parking fees to incentivize potential consumers to buy NEVs.

In other cities, policies need to target areas including public transportation, rental, sanitation, and urban distribution to promote the electrification of vehicles in the public sector, according to the article.

In rural areas, policies can guide car companies to develop models suitable for those areas and improve sales as well as charging networks, thus unleashing the local potential for NEV consumption.

To further strengthen the advantages of NEV products, China should also accelerate the development and application of solid-state batteries, intelligent connected vehicles and hydrogen fuel cell vehicles, according to the article.

At the same time, the country should also actively carry out pilot projects and accelerate the large-scale application of smart connected cars, the article said.

China should also ensure the supply of automotive chips and raw materials for power batteries as well as price stability to guarantee a smooth supply chain, the article said.

In addition, China should make efforts to reduce the cost of purchasing and using NEVs, and study and clarify the continuation of purchase tax incentives for NEVs, the article said.

By the end of June 2022, China had 310 million vehicles, of which 10.1 million were NEVs, according to data released by China's Ministry of Public Security on July 6.

It is worth noting that NEVs account for only 3.23 percent of all car ownership, meaning they are only at the very beginning of replacing traditional ICE vehicles.

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