China Prepares to Provide Low-Speed Electric Car Makers Legal Status

China prepares to plug a regulatory gap and start supervising low-speed electric vehicles utilized primarily in the country’s rural locations, legitimizing a market sector that overshadows sales of regular battery-electric automobiles made by the companies like BYD Co. and Tesla Motors Inc.

Under the present regulative framework, there are no rules governing the creation and sale of electrical automobiles with top speeds below 100 kilometers per hour (62 miles per hour). The outcome has been an expansion of low-cost, poorly made EVs powered by contaminating lead batteries that posture a danger to roadway security and the environment, the Ministry of Industry and Information Technology wrote in a declaration on its website.

The federal government will legislate manufacturers that meet the standards governing EV start-ups and regulate them under those requirements, while enacting technical requirements for the rest, the ministry said. Those that do not meet the new standards, which are under discussion, will be shut down, as per the statement.

“The move will force existing electrical automakers to accelerate product advancement and compete for consumers,” stated Cui Dongshu, secretary general of the China Passenger Car Association. “It is excellent news for low-speed electric automakers as they can finally make vehicles lawfully.”