The Chinese government has released new legislation regarding policies aimed at encouraging development in the new energy automobile industry, the Nanfang Daily reported today. The legislation, which was announced on Monday by the Ministry of Finance, Ministry of Industry and Information Technology and the Ministry of Science and Technology, was made in order to help speed the pace of development in the industry. It may be good news for manufacturers like BYD, which possess extensive new energy vehicle programs.
The legislation will supply funding to help automobiles manufacturers in making innovations and breakthroughs in design for new energy vehicles and the auto parts they require. Manufacturers of pure electric, plug-in hybrid and fuel battery vehicles, as well as battery makers, will all be eligible for the funding. Automobile manufacturers' new energy vehicle research and development programs must constitute at least a certain proportion of their overall business to be qualified for funding. Battery makers, meanwhile, must own the intellectual rights to their battery technology.
The three ministries will all dedicate a set amount of funds, which the Ministry of Finance will then be responsible for allocating. According to the legislation, 40 percent of funding will be granted as a given project has started, ten percent will be granted during development work, and the remaining 50 percent will be granted following said project's completion and certification. Funding may be delayed or halted for projects progressing slowly when deemed necessary.
