Posted on behalf of Jane Qiu

China will invest 100 billion yuan (US$16 billion) in developing the production and commercialisation of electric cars in the coming decade, according to a report published last week in The China Business News (CBN), a Chinese-language newspaper. (The article is reproduced here at Phoenix Net)

The plan promises to produce 5 million such vehicles – half of which will be all-electric, with the remainder being hybrids – by 2020. Half of the budget will be used to promote research and development of key technologies.

The programme, which will be led by the Ministry of Industry and Information Technology, will support the manufacture of electric vehicles and their components and the establishment of basic infrastructures in pilot cities. It also includes economic policies, such as tax breaks and government subsidies, to promote the industry.

By the end of last year, 25 Chinese cities had instigated pilot programmes to promote the use electric vehicles, says the CBN report. In 2010, China produced 7200 hybrid and all-electric vehicles of over 200 brands by 54 companies, but none have been sold in the country, perhaps because of the high cost of the vehicles and the lack of recharging infrastructure.

The plan also outlines compulsory targets for government agencies and public sectors: of all vehicles purchased between 2011-2015, at least 50% should be energy-saving vehicles, including 10% on electric cars. In 2010, government agencies and public sectors spent 400 billion yuan in new cars, says the CBN report.

The ten-year plan on electric vehicles is one of seven major national strategic programmes that also include plans on biotechnology, renewable energy, new-materials industry, energy conservation and environmental protection, and the new generation of information technology.