Chinese Government Has A Way Of Getting What It Wants…

In Clean Talk, Electric Vehicles, News

In its quest to get more electric cars on the road, China is transitioning away from rebates and subsidies and moving toward a regulatory scheme.

The new Chinese regulations simply require manufacturers to build a certain percentage of low and zero emissions cars, which are known as new energy vehicles.

But the switchover is putting a damper on EV sales in the country.

BYD has reported that its earnings in the third quarter of 2019 were down more than 86% due to a sharp decrease in sales during the quarter. As a result, its revenue was off 9% to 31.6 billion yuan.

Despite all the gloomy news, the company still reported its net profit is up 3% in 2019 and that revenue increased 5.4% since the first of the year.

BYD projects its net profit for the whole of 2019 will shrink by 36 to 43% as sales of electric cars continue to weaken in the fourth quarter.

The Chinese government has a way of getting what it wants and it wants cars that run on fossil fuels to go away, and the sooner the better. China has a history of lurching from one set of policies to another, often with incredible speed.

There is every reason to believe that its sales mandates — which comes with significant fines for non-compliance — will accomplish that mission eventually.

Reference- Xinhua News, Clean Technica

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