China could rival Europe on clean vehicles
Clean vehicle purchases are expected to advance exponentially as part of Beijing’s effort to phase out the internal combustion engine, analysis published March 23 by consultant group Wood Mackenzie found.
Wood Mackenzie said it expects new-energy and hybrid electric vehicle (HEV) sales to exceed 80% of consumer sales by 2035. That time frame aligns with Chinese policy to phase out gasoline-fueled vehicles within the next 15 years or so and represents an increase of about 70% from current levels.
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As of now, Beijing has characterised HEVs as the main way to start the transition away from the internal combustion engine.
“An HEV could be less carbon intensive on a well-to-wheel basis than a battery electric vehicle that runs on coal-generated electricity,” Wood Mackenzie consultant Yuwei Pei said.
The hybrid vehicle, which uses a battery to complement a gas-fueled engine, is 30% more fuel-efficient than a conventional vehicle. For its 2035 goal, however, the government envisions an equal share between HEVs and new-energy vehicles, those that rely entirely on fuel cells, batteries or plug-in technology.
To realize its goals, Chinese utilities have spent an estimated $1bn on charging infrastructure, with future investment plans totalling $3.6bn over the next four years.
“These efforts are projected to make China the second largest market for charging infrastructure, only next to a combined European market,” Wood Mackenzie estimated.