As part of an ongoing, multi-year initiative, a new report commissioned by the World Bank, conducted by a team consisting of PRTM Management Consultant, Inc. and Chuck Schlock and the Innovation Center for Energy and Transport, assesses the challenges and opportunities of China’s New Energy Vehicle (NEV) Program. This study concludes that the country’s program provides a sound basis for the further expansion of electromobility in China. The study finds that the program has helped to develop new businesses and business models to provide the elements necessary to enable an EV ecosystem.

The study also identifies the central challenges facing China as it proceeds with its New Energy Vehicle Program, these are:

- Policy: finding that Chinese policies are too focused on issuing subsidies but do little to stimulate demand, deploy charging infrastructure, or stimulating EV related investment

- Integrated Charging Solutions: the current charging infrastructure provides fleet-centric solutions while ignoring the needs of private vehicle owners

- Standards: China has yet to create vehicle, charging, power grid or safety standards. These must also be harmonized with standards internationally

- Commercial Models: China must develop a commercial model to account for the expenses of maintaining an EV ecosystem independent of government support

- Customer Acceptance: China must strive to make vehicles more attractive to customers by helping to reduce the initial cost of an NEV by creating solutions such as: battery exchange and vehicle finance markets

- GHG Benefits: China’s electricity supply remains very high in greenhouse gas emissions. Thus, to fully realize the benefits of NEVs the country must transition to more sustainable forms of electricity.

For a detailed overview of China’s New Energy Vehicle Program and more information on the challenges facing the country, read the full report.

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