China plans to convert 60% of all cars sold to electrified vehicles by 2035: Sources

Chinese government is working on an ambitious target of converting 60 per cent of all automobiles sold in the country to electrified vehicles by 2035. According to sources China’s Ministry of Industry and Information Technology is deliberating on its auto industry plans for 2021 through 2035. The proposals are still in discussion and the government is planning to disclose a draft by the end of 2019.

According to china’s last auto industry plan announced in 2017, New Energy Vehicles would account for more than 20 per cent of the country’s total vehicle sales by 2025. The new proposal is likely to increase it to 40 per cent by 2030, as China is planning to lead the world in shifting to electric engines from combustion engines.

China’s industry ministry said that everything is under plans and they are doing the relevant research work.

The 2035 target indicates a 12 fold jump from the percentage of NEV sold currently, which is about 5 per cent.  It will put pressure on the global carmakers to churn out more electrified cars to compete in the world’s largest auto market. China usually sets national-level goals for high-priority industries to help the government in setting tax and subsidy measures.

BloombergNEF estimates that NEVs -- excluding commercial vehicles -- will account for 56 per cent of total passenger vehicles in China by 2035.

The plan could lessen the concern that China’s commitment to electric cars is wavering after the curtailment of government subsidies, which has impacted EV sales heavily in July. Top Chinese EV maker BYD Co. announced a possible drop in because of slowing demand. Considering the fact that about half of the world’s EVs are sold in China, any drop in sales in the country is likely to impact global sales.  In July, global EV sales fell for the first time on record because of China, according to Sanford C. Bernstein.

China said it is working on setting up a timetable for phasing out sales of fossil-fuelled cars in China.