Rocky road to come for new energy car market

New energy vehicle buyers are exempt from purchase tax until the end of 2017. The State Council also stipulated that new energy vehicles should account for 10 percent of the governments' newly purchased vehicles in 2014, 20 percent in 2015 and 30 percent in 2016.

The policies have achieved some results. A survey by the Ministry of Industry and Information Technology showed that passenger cars accounted for about 70 percent of 60,000 new energy vehicles sold in 2014, indicating their growing popularity among private car buyers.

However, obstacles still remain in terms of infrastructure construction. Building charging poles is difficult in many communities, especially for those who do not have fixed parking lots.

When it comes to public charging stations, although private capital is invited to play a role, investors are adopting a wait-and-see attitude as they have yet to find a profitable business mode.

Authorities in some cities do not offer subsidies to people who buy new vehicles from makers from other cities.

Others are working together for a new form of protectionism. "Some propose that if you make vehicles produced in my city eligible for subsidies in your city, I will make your vehicles eligible for subsidies in mine," Xu Xiaogui, a Venucia sales executive at Dongfeng Nissan told the Economic Observer.

Wang, the senior expert of the nation's new energy vehicle program, said it was time to give an overall appraisal of cities' performance in promoting the vehicles.

"It is no use beating around the bush. Those who have done a good job should be awarded; those who have too much difficulty finishing the job can withdraw from the program," he said.

Wang called on automakers showing more interest in producing electric vehicles to come up with more plug-in hybrids.

"We have too few plug-in hybrids in the market. Chinese automakers should have made more preparatory work in this respect," he said.

"If we give up plug-in hybrids, the road ahead will become more difficult for us. It is time for those who are against plug-in hybrids to be more tolerant. Otherwise, we are forcing ourselves to lag behind others," said Wang.

Those in the new energy vehicle sector have long been divided on their choice of electric vehicles or plug-in hybrids.

Zhang Yong, a senior executive at BJEV, the new-energy vehicle arm of BAIC Motor, said, "I don't think we should differentiate them by ourselves."

"Plug-in hybrids are not necessarily more popular than electric ones. Both should be available in the market and it should be up to the buyers to choose," he said.

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