The Three "Stumbling Blocks" Block the High Growth of New Energy Vehicles

In 2018, during the two national conferences, the Chinese government introduced several "policy red envelopes" aimed at boosting the growth of new energy vehicles. These policies have helped China's new energy vehicle industry enter a new phase of rapid development. However, despite the progress, some members of the National People’s Congress and the Chinese People's Political Consultative Conference (CPPCC) believe that challenges still exist. What could become future obstacles for the fast expansion of new energy vehicles? And what solutions do these representatives propose? At the first session of the 13th National People’s Congress on March 5, Premier Li Keqiang emphasized in his government work report that the purchase subsidies for new energy vehicles would be extended for another three years. He also called for further development of the new energy automobile industry and broader market openness. Following the conference, Minister Miao Miao of the Ministry of Industry and Information Technology stated that with continuous technological progress and improved charging infrastructure, the new energy vehicle sector is expected to grow rapidly in the coming years. Over the past five years, under the influence of these policies, China has achieved significant milestones in the new energy vehicle sector. It has consistently been the world’s largest producer and seller of new energy vehicles for three consecutive years. By the end of last year, the cumulative number of promoted new energy vehicles exceeded 1.8 million, with annual production and sales reaching nearly 800,000 units—an increase of over 50% compared to the previous year. Despite this success, some deputies and committee members highlight that there are still challenges ahead. What are these potential obstacles, and what recommendations do they bring forward? **Obstacle One: Local Protectionism** Some cities have created local lists and testing standards for new energy vehicles, which hinder the entry of vehicles from other regions. This practice, driven by local interests, creates unfair competition. Wang Fengying, a National People’s Congress representative and president of Great Wall Motors, has repeatedly called for breaking down such local protectionism. She suggests creating a unified market environment through policy reforms and regulatory improvements. She also emphasizes that inconsistent subsidy policies and unclear timelines make it difficult for companies to plan effectively. To address this, she recommends central government oversight of local access systems and clearer accountability for subsidy distribution. Additionally, she proposes shifting subsidies from vehicle purchases to usage-based incentives, such as electricity or toll discounts, directly benefiting users. **Obstacle Two: Inadequate Charging Infrastructure** As of the end of 2017, only 214,000 public charging stations had been built nationwide—far below the 4.8 million target set for 2020. Xu Heyi, a CPPCC member and chairman of Beijing Automotive Industry Group, points out four main issues: site selection, expansion difficulties, coordination problems, and management inefficiencies. He suggests accelerating R&D in advanced charging technologies, upgrading power supply facilities, and setting clear construction standards for residential and public parking lots. A special coordination office is also needed to streamline government efforts and support innovative charging models. Yin Tongyue, a National People’s Congress deputy and chairman of Chery Automobile, proposes adjusting peak and off-peak electricity pricing to encourage nighttime charging, which can help reduce grid waste and lower carbon emissions. **Obstacle Three: Battery Recycling Challenges** With the growing popularity of new energy vehicles, the number of used batteries is increasing rapidly. According to the China Chemical and Physical Power Industry Association, battery production reached 37.06 GWh in 2017, up 21.5% from the previous year. Wang Qi, a National People’s Congress representative from Sichuan Qiyang Automobile Group, warns that many batteries from early adopters are now reaching the end of their lifespan. Improper disposal of these batteries can cause serious environmental damage, including heavy metal and chemical pollution. To tackle this, Wang Qi suggests improving waste battery management, establishing a tracking system, and holding manufacturers accountable for recycling. He also calls for pilot projects, standardized recycling systems, and stronger government support for research and innovation in battery recycling. These challenges remain critical as China continues to push forward with its ambitious goals for new energy vehicles. With coordinated policy efforts and continued innovation, the industry is well-positioned for long-term sustainable growth.

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