(Yicai Global) Apr 25 -- China plans to achieve an annual production and sales of two million new energy vehicles (NEV) by 2020, says the government's recently-released auto industry plan.
China's ministry of industry and information technology, the National Development and Reform Commission (NDRC), and the ministry of science and technology issued the "Long-term Development Plan for the Automotive Industry." It said the country will strive to cultivate some of the world's top 10 new energy car companies by 2020.
The annual production and sales of new energy vehicles is planned to reach two million units by 2020. The new energy vehicles will account for more than 20 percent of automobile production and sales by 2025, said a statement on the official website of the ministry of industry and information technology today.
To achieve this goal, China will take a variety of measures, including deepening the institutional reform and increasing financial and taxation support.
In deepening the institutional reform, China will improve the domestic and foreign investment management system, and liberalize the limit on joint venture proportion of shares. It will strengthen the automobile production capacity monitoring and early warning, have a dynamic tracking of industry capacity changes, regularly publish production capacity information, and guide the industry and reasonable social capital investment.
In increasing financial and taxation support, China will encourage the enterprises to increase their R & D investments, fully implement business tax, VAT tax reform, consumption tax, vehicle purchase tax and other tax policies. It will also increase support to the key areas such as automotive key parts and components, new energy vehicles, and intelligent network connection of vehicles, and support the Export-Import Bank of China within the business scope for it to increase services for auto firms that want to go global.