China has set a 2019 deadline to enforce green-vehicle targets, giving domestic as well as foreign automakers such as General Motors ( GM ) and Ford Motor ( F ) in the world's largest auto market some breathing room to phase out fossil-fuel cars.
[ibd-display-video id=2324531 width=50 float=left autostart=true]Starting in 2019, at least 10% of an automakers' production must be zero- and low-emission vehicles. That quota rises to 12% in 2020. Under a previous proposal, China would have implemented the policy in 2018, a target that was seen as particularly onerous for local automakers but also affected global auto giants who operate in that country through joint ventures with local partners.
The quotas apply to carmakers that make or import more than 30,000 traditional vehicles annually, and those who fail to comply must buy credits or face fines.
In the long term, electric cars will be the norm in China, which recently joined Norway, the U.K., India and select other countries in seeking to phase out cars that burn gasoline or diesel. But Beijing hasn't set a timetable yet for its ban, nor has New Delhi.
Still, as India aspires to have every vehicle in the country run on electric power by 2030, Tata Motors ( TTM ) will outfit a government-backed energy agency with 10,000 electric cars.
The owner of the luxury Jaguar Land Rover brand won what was described as the world's largest single EV procurement, beating out Nissan ( NSANY ) and Mahindra & Mahindra, a company Ford is allying with in the Indian auto market.
Shares of GM slipped 0.5% to 40.38 on the stock market today but remain above buy range after breaking out of a cup-with-handle base Sept. 1. Fiat Chrysler ( FCAU ) rose 1.8%, Tesla (TSLA) added 0.4%, and Ford nudged up 0.1%. Kandi Technologies (KNDI), a China-based maker of electric cars, rallied 1.8%, and Tata Motors climbed 2.4%.
Amid China's push to speed adoption of NEVs, GM noted that it's expanding its lineup of battery electric cars and plug-in hybrids in China, but added, "Continued joint efforts by the government and companies are essential to build broad-based consumer acceptance for NEVs."
Ford Motor is exploring a joint venture to produce electric cars in China with Anhui Zotye Automobile. GM last month unveiled a $5,300 electric car in China from its joint venture brand Baojun. And Volkswagen has signed a pact with Anhui Jianghuai Automobile on electric vehicles.
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