Supported by the state, diesel engines below 3L will be the focus of development
In the past three years, the Chinese government has placed significant emphasis on promoting the development of electric vehicles within the broader new energy vehicle sector. It is actively encouraging and supporting the use of direct-injection gasoline engines with a displacement under 1.5 liters that meet China IV emission standards, as well as diesel engines with a displacement below 3 liters and power output exceeding 45 kilowatts. These efforts are aimed at driving innovation and efficiency in the automotive industry.
The "Regulations on the Adjustment and Revitalization of the Automobile Industry" have been finalized and were officially released by the State Council on February 10 to all relevant government departments. However, they have not yet been made public to the private sector. The upcoming regulations will cover various key areas, including the expansion of car ownership in rural regions, industrial restructuring, and the elimination of unreasonable fees. These measures signal a clear commitment from the government to boost the growth of new energy vehicles, particularly electric vehicles.
According to the regulations, the government aims to ensure that electric vehicles—covering pure electric, plug-in hybrid, and conventional hybrid models—reach an annual production and sales volume of 500,000 units by 2011, making up 5% of the total automobile market. To achieve this, there will be a strong focus on developing core technologies for electric vehicle components, aiming for technological independence and product localization.
Moreover, the policy highlights the prioritization of support for direct-injection gasoline engines under 1.5 liters that meet national IV emission standards, while also offering policy incentives for diesel engines with displacements under 3 liters and power outputs above 45 kilowatts. This dual approach reflects a balanced strategy to promote both fuel-efficient internal combustion engines and cleaner electric alternatives.
With the implementation of the "Auto Industry Adjustment and Revitalization Plan," a series of complementary policies will likely accelerate the adoption of new energy vehicle strategies across China. These initiatives are expected to address pressing issues such as energy shortages and environmental pollution caused by traditional vehicle development, ultimately paving the way for a more sustainable and competitive automotive industry in the country.
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