China to accelerate the shift to electric taxis

SHANGHAI, Nov 1 (SMM) – China is accelerating its pace to develop new energy vehicles as Beijing and major cities have announced action plans for the replacement of gas-powered taxis with electric cars in the next few years, a measure set to boost NEV sales and reduce pollution. 

Over the next two years, all newly registered or replacement taxis in Beijing have to be fully electric vehicles, according to the Beijing Municipality Transport Commission on October 30. 

It was reported that more than 1,000 brand new fully electric taxis have hit the road in Beijing so far. 

By the end of next year, nearly 20,000 taxis in Beijing will be switched to NEVs, exceeding 20% of the total number of taxis in the city.

Shenzhen, the technology hub in south China, has also taken the lead among major Chinese cities for the conversion of gas-powered taxi. It was reported that only fully electric vehicles will be registered as online ride-hailing taxis in Shenzhen. The city also aims to complete the transition of 100% electric taxies by the end of 2019, with 18,000 new charging piles in place.

Other Chinese cities including Guangzhou, Wuhan and Taiyuan also announced similar policies to promote new energy taxies. 

An industrial report focusing on petroleum consumption in China noted that the country is expected to completely phase out fossil fuel vehicles by 2050, with the public and special vehicle sectors to achieve this goal ahead of others. 

Hainan was the first province in China to release a timeline of banning sales of diesel or petrol vehicles. 

The electric car movement in China is also expected to improve NEV sales after a reduction in government subsidies and a cooling economy weigh on buying sentiment.

Shenzhen-based BYD, the biggest plug-in electric car manufacturer in China, saw weaker-than-expected sales in the NEV market and lower year-over-year profits of the company’s NEV business in the fourth quarter as demand remains sluggish.