China likely to support low-speed EVs
By: Wayne Xing
2010-07-01
The Chinese government is likely to give green light to low-speed electric vehicles, according to people familiar with the draft of a 12th Five-Year Plan on Energy-Saving and New Energy Vehicle Industry Development (the Plan).
Unlicensed low-speed electric vehicles are expected to be legally permitted to drive on rural roads as long as they meet safety and performance standards.
It is said that low-speed electric vehicles would be listed in a separate category called "electricity-powered vehicle." They would be an important market segment for the country's efforts to develop new energy vehicles, in addition to pure and plug-in EVs.
The government will allocate a significant amount of investment in EVs in the next five years "comparable to that of the U.S. and other leading industrial countries," according to Fu Yuwu, secretary general of SAE-China.
Meanwhile, safety and performance standards of low-speed EVs are to be drafted, according to the Plan, as part of the government efforts in opening up a new era for the development of China's new energy vehicle industry. Manufactures must have production license and their vehicles subject to registration.
Low-speed electric vehicles are microcars powered by onboard lead-acid batteries, with a maximum speed of 20 km/h and a price of below ¥20,000 ($2,950). Because of low price and cost, China sees a mushrooming number of such unlicensed vehicles in the vast rural areas.
In light of great demand and the fact that these vehicles are green and low-speed, local governments, such as Shandong Province, have been supportive of their growth over the last few years.
Some experts suggest prohibiting such vehicles because they are unlicensed, not safe and may bring about pollutions because of the use of lead-acid batteries. However, other industry experts including Chen Qingtai, retired director of the State Council Development Research Center, China's government think tank, are in favor of low-speed EVs because they offer clean and affordable mobility to the large rural population. Low-speed EVs are the "black horse" of China's automobile development and point to a new direction in the country's road to new energy vehicle solutions, he said.
Despite the many challenges in regulating the emerging low-speed EV market, the central government is expected to endorse such grass-root microcars so popular in the rural areas and treat them as an integral part of China's efforts in going green and going electric in individual mobility.