E-car sector embraced by favorable policies

China's new energy vehicle (NEV) sector ushers in favorable policies as an opinion was jointly issued recently, led by the National Development and Reform Commission, suggesting deeply integrated development in advanced manufacturing and modern service industries.

Fifteen government departments will roll out 30 favorable measures in accordance with the opinion.

In fact, the fuel-to-NEV replacement trend is irreversible. One of the biggest barriers the new energy vehicle sector now faces is the drag on building recharge infrastructure.

The opinion points out that an overall system for car manufacture and services should be perfected. The upgrade should be accelerated in transforming traditional fuel vehicles as a tool for mobility into an intelligent mobile space.

Opening services such as battery replacement and rental and also establishing a battery recycle system are especially encouraged in the opinion.

As one of the countries with some of the earliest and strongest efforts in developing the new energy car industry, China has seen a slew of outstanding enterprises emerge in the industrial chain. But some difficulties in core technologies including battery power still need to be overcome.

Echoing the opinion, a fund company for supporting the transmission and upgrade in the nation's manufacturing industry has been established with registered capital of 147.2 billion yuan ($20.91 billion) by 19 departments and enterprises including the Ministry of Finance and China Development Bank Capital. The fund company will invest in both growing and mature companies in new material, new generation information technology and electrical equipment fields.