The government’s quotas for new-energy rides start in 2019
China has become the world’s largest automotive market, thanks to drivers whose numbers far eclipse those of such former leaders as the U.S. and Germany. But while mainland producers may lead the industry by number of new vehicles sold, China has yet to develop a car brand that rivals the cachet of Audi, BMW, Mercedes, or even some General Motors marques. That’s allowed foreign makers to build lucrative businesses in the nation that help maintain their global dominance.
Now, President Xi Jinping’s determination to rewrite the rules of China’s roads to curb pollution and reduce the nation’s dependence on imported oil may have a side benefit for its automotive industry. Environmental regulations and production incentives could hasten the development of a high- volume leader in electric vehicles that might finally give China a shot at a world-class auto brand.
Helpful government hands have already fostered national champions in e-commerce (Alibaba Group Holding Ltd.), social media (Tencent Holdings Ltd.), and smartphones (Huawei Technologies Co.). Now Beijing seems determined to identify the most promising of some 80 companies developing new-energy passenger vehicles, helping the strongest producers elbow into the club of major global automakers.
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