China’s Jiangling Motors unit awarded electric car licence
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China has awarded its seventh electric vehicle production license to a unit of Jiangling Motors, according to a posting by China’s state planner, as the country accelerates approvals for green car projects.
Jiangxi Jiangling Group New Energy Vehicle has permission to proceed with a project to make 50,000 pure electric cars, according to a notice dated Monday in a database administered by the National Development and Reform Commission (NDRC).
The notice did not give further details. Government records separately show that Jiangling Motors is a shareholder.
China’s government has employed a raft of policies that spurred a boom in electric and plug-in hybrid cars since 2015. It aims to cut air pollution that frequently blankets urban areas and to push its car industry to leap-frog ahead of global automakers with long experience making internal combustion engine cars.
The country is accelerating approvals for electric vehicle-only projects under a special programme, having approved a license for Chinese auto parts supplier Wanxiang Group earlier this month, while officials say they will restrict new factories making traditional petrol cars.
Questions & Answers
Q.Which specific entity within Jiangling Motors received this production license?
Which specific entity within Jiangling Motors received this production license?
The license was awarded to Jiangxi Jiangling Group New Energy Vehicle. This unit has permission to proceed with a project focused on making pure electric cars.
Q.What is the intended production volume for electric vehicles under this new license?
What is the intended production volume for electric vehicles under this new license?
The approved project grants permission for the production of 50,000 pure electric cars. This detail was outlined in the notice from the National Development and Reform Commission.
Q.What are the broader reasons behind China's push for more electric vehicle production licenses?
What are the broader reasons behind China's push for more electric vehicle production licenses?
China aims to reduce air pollution, which often affects urban areas, and to advance its car industry. The strategy is to allow the industry to surpass global automakers experienced in internal combustion engine cars.
Q.How does the government's approach to traditional petrol car factories compare to its strategy for electric vehicles?
How does the government's approach to traditional petrol car factories compare to its strategy for electric vehicles?
While accelerating approvals for electric vehicle-only projects, officials have indicated that they will restrict new factories manufacturing traditional petrol cars. This shows a clear shift in focus.
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