Subject
The electric vehicle industry in China.
Significance
A new subsidy regime for electric vehicles (EVs) in China aims to improve the quality of new models in order to capture a growing share of export markets. Chinese carmakers dominate domestic sales of EVs but struggle to compete in export markets, where foreign models boast better performance.
Impacts
China’s push for EVs, particularly electric buses, suggests that diesel demand will moderate and then fall in coming years.
Urban air, in particular, will benefit from the drop in diesel fumes.
The electricity system will accommodate rising demand from EVs without serious stress.
Substituting imported crude oil for vehicle fuel with domestically sourced electricity may improve energy security.