Saturday 28 October 2017

China’s Petrol-Free Incentive: Implications for Tesla Motors and the Industry

China is looking to ban internal combustion engine (ICE) cars, according to a Chinese Government official. Xinhua, the official press agency of China, reported last month that the Chinese government has begun to look into a ban on said vehicles without disclosing any timeline. However, Xin Guobin, vice minister of industry and information technology, said the policy will be implemented in the near future.


Despite some environmental concerns regarding battery production, EVs are gaining wide acceptance around the globe. China, the largest car manufacturer, is at the forefront of promoting EVs. A ban of ICE vehicles will benefit EV manufacturers, especially local players.

International players like Tesla, however, are not expected to benefit from the policy. Moreover, competition will be intensified in light of government support.

In short, EVs are here to stay. The same cannot be said about any specific EV manufacturer, but local players should flourish as governments support alternative fuel vehicles.

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