China's electric vehicle production could reach one million by 2020

China, the world's largest automotive market, could soon become an electric vehicle (EV) mecca. According to Wan Gang, China's Minister of Science and Technology, the nation's annual EV production capacity could eclipse one million units in less than ten year's time. Gang believes that new energy vehicles are key to China's automotive industry and predicts that subsidies, combined with a drive to reduce pollution, will promote the adoption of EVs across the nation.

Gang further suggests that the country's aim to replace its current public transport vehicles with battery-powered ones will have a profound impact on domestic EV development. Since 2009, when 25 Chinese cities partnered to launch a pilot program aimed at extolling the virtues of EVs for public transport, a total of 8.5 billion yuan ($1.28 billion U.S. at the current exchange rate), has funded the program, mainly from venture capitalists and automakers. Additionally, the country's EV subsidies, which in some cases reach as high as 60,000 yuan ($9,035 U.S.) can help influence buyers to go electric. If battery-powered vehicles fly off lots at a rate of a million a year by 2020, we'd be surprised, to say the least, but China certainly feels driven to lead the EV way.

[Source: Xinhua]