China is moving to the forefront of vehicle electrification with its effort to launch large pilot programs in 25 cities, a new report concludes.
The study, by consulting firm PRTM and the World Bank, says vehicle electrification is strategically important to China for four key reasons: global climate change, energy security, urban air quality and auto industry growth.
China recently announced a plan for $15 billion in government investment in vehicle electrification -- a broad term that includes hybrids, plug-in hybrids and battery-electric vehicles.
But Oliver Hazimeh, head of the e-mobility practice at consultant PRTM, says that although China currently leads the race in vehicle electrification, it faces several challenges. Those include charging infrastructure, standards, consumer acceptance, commercial model viability and the electric grid.
And, Hazimeh added, other countries are moving aggressively, so China’s advantage may not last. The findings are based on in-depth research and interactive sessions with government, municipal and industry leaders, according to PRTM.
The study is titled “The China New Energy Vehicles Program: Challenges and Opportunities.”