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China Resorts to Electric-Vehicle Stimulus as Auto Industry Flails

By Zhao Runhua / Jun 06, 2019 05:41 PM / Environment

Photo: IC Photo

Photo: IC Photo

China released policies Thursday aiming to spur the purchase of electric vehicle (EV) amidst historically bad times for the auto industry.

The policies demand that local governments cease restrictions on EV sales or driving, according to an official plan co-released by the National Development and Reform Commission, the Ministry of Ecology and Environment, and the Ministry of Commerce.

Many cities have been implementing quotas on the issuance of new license plates, in attempts to control congestion and pollution — though the rules often extend to even more environmentally friendly EVs.

Release of the plan comes after a major domestic automobile trade group requested stimulus policies, including relaxing license-plate limits, to alleviate the industry’s weak performance.

Related: Shenzhen, Guangzhou to Ease Car Ownership Restrictions

Contact reporter Zhao Runhua (

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