Volkswagen stated it aims to fulfill upcoming difficult quotas in China for selling more green vehicles on its own and would not turn to acquiring credits from rivals.
China has strongly promoted plug-in hybrid and battery electric vehicles, called ‘new energy vehicles’, to combat urban smog however is gradually phasing out aids in favor of tough requirements like quotas.
Under draft rules launched in September, car manufacturers need to generate or purchase credits comparable to 8 percent of their overall sales by 2018. Those rules begin top of forthcoming emission standards Volkswagen referred as the world’s hardest.
VW, the biggest foreign car manufacturer in China, prepares to sell electric vehicles to ride-hailing partner Didi and to produce credits in a tie-up to produce electric cars with JAC Motors, its China CEO Jochem Heizmann informed press reporters ahead of the Shanghai Motor Show.
In comments that clarified the complicated rules, he stated that a car could be worth numerous credits, with full-electric cars getting more credits than plug-in hybrids.
Total sales of a million cars and trucks yearly, for example, would need 80,000 credits that could be created by selling 40,000 plug-in hybrids that get 2 credits each, and even fewer if they are completely electric, he said.
VW Group sold almost 4 million cars in China in 2016 however just “several hundred” imported new energy vehicles. It anticipates sales to enhance as locally produced items are introduced and aims to sell 400,000 by 2020 and 1.5 million by 2025 to fulfill the quotas, Heizmann stated.
It prepares to meet the 8 percent requirement even if the federal government responds to lobbying efforts to delay or decrease the quota, Heizmann stated.
