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By Alfred Tian

On Jun.4, 2015, China released Management Rules on Newly Established Electricity-powered PV Manufacturer to encourage new entrants for the burgeoning NEV industry to fight against deteriorating air pollutions in the world’s largest auto market.

Compared with draft version, the final version of the rules have lowered entry threshold to a large degree. The new entrant may not follow the lowest investment requirement from Auto Industry Development Policy and new entrant may not have >=3-year NEV R&D experience, reads the new policy. According to Auto Industry Development Policy, which was released in 2004, requires that the new auto project should have minimum 2 billion RMB investment, with minimum 800 million coming from its own capital ; the new auto project should also have R&D function, with minimum 500 million investment.

The new policy, followed by more incentive policies,  is expected to attract enthusiasm from ambitious players, such as Wanxiang Group who bought A123 battery system and luxury extended range EV maker Fisker Automotive in the US last year.

According to latest Made-in-China 2025 Strategy, China aims to sell  3 million NEVs per year, with at least 2 OEMs ranking world top 10 NEV manufacturers by 2025.

In the first four months of 2015, China has sold over 18,000 NEV passenger, up 730% year-on-year,  according to the latest data release.

 

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