China's BYD electric cars have not been getting the level of government support the company hoped for. Photo: CFP

The Beijing government recently announced a series of measures to reduce pollution and boost the development of ecologically friendly electric cars.

On January 28, a new regulation to support electric cars was issued, offering a subsidy between 10,800 and 63,000 yuan ($1,800 and $10,400) for purchasing an electric car, depending on the driving range of the vehicle.

A total of 20,000 plates for electric cars will be available every year, and they will be distributed to both individual and corporate applicants. If the number of applicants exceed this limit, the remaining applicants will need to go through a regular lottery process to get a plate, similar to getting a plate for a gasoline-powered autos. So far, about 1,960 applications have been received, with 655 of them are from individuals and 1,305 from organizations. In order to ensure the electric cars have adequate power stations in town, the government has also promised 17,000 battery-charging stations over the next four years.

Meanwhile, barriers still remain in the local electric car industry. As early as 2011, several government authorities advocated allowing electric-powered car owners to get scarce car license plates without having to enter the lottery system that limits the number of new cars on the road. Yet so far, only Shanghai has allowed owners of electric-power vehicles to get a plate without going through the lottery process.

The hybrid and electric cars launched by China's BYD Auto are some of the products facing barriers in the Beijing market. Li Yunfei, the deputy manager of BYD Auto, said in a media interview.

"Our plug-in hybrid electric vehicle and E6 full-electric vehicle are the two types that BYD launched for targeting the private auto market," he said. "Yet buyers of either of them are not only unable to get subsidies, but are also required to enter the lottery for a car plate."

Yet regulatory headaches and a lack of government support are just one factor holding back the development of electric cars in Beijing.

Luo Lei, the deputy secretary of the China Automobile Dealers Association, said in an interview with Science and Technology Daily in January that opening up a market for electric vehicles depends on them being accepted by local consumers more than on government policy.

"The lack of choice, safety and sustainability of this type of automobile are also reasons that deter consumers from buying electric cars," he said.

According to xinhuanet.com, there were about 17,642 hybrid or electric vehicles sold in 2013, and 14,604 of them were fully electric vehicles.

Experts said that the market growth of electric vehicles still relies on support from government policymakers, which has not been strong.

Global Times