How China’s cities are promoting the use of alternative energy vehicles 04-27-2018

In 2018, local administrations in succession issued varied preferential policies to encourage the driving of AEV, as more and more AEVs run on the road. China is the leading country in AEV usage and shows great efforts to enlarge the trend. 


Market intelligence firm CCM gives an overview of the different policies that have been enforced in major cities in China in order to promote the purchase and use of AEVs in the country. 

It is worth noticing, that China is putting a lot of effort on the development and acceptance of AEVs, not only because of the severe pollution problem but also because of the country’s heavy dependence on imported oil, which is seen as a key strategic vulnerability. An auto industry plan released last year aims to set AEVs making up all the future sales growth in the country. China is considering ending production and sales of automobiles powered by gasoline and diesel in the near future. Considering, that by 2020, China is projected to have around 300 million automobiles, which would surpass the current amount in the USA by 35 million, the country wants to lead the green revolution in the automobile sector.


Preferential policies in the capital are focused on battery electric vehicle only. Those vehicles are just a part of AEVs in general. The AEVs which have carried the license-plates already are exempted from traffic restriction nationwide. In fact, it is a relatively special policy, as it is aimed at only battery electric vehicles. Plug-in hybrid electric vehicles are excluded from both the local fiscal subsidy policy and the exemption from traffic restriction special treatment and meanwhile is not allowed to join in the AEV license-plate lottery. According to CCM, Beijing's motor vehicle park is large and the preferential policies aimed at AEV are just a few.


Parking for charging is 2-hour free in the technological innovation centre in the Southern city near Hong Kong. In accordance with the Notice to Complete Charging Policy for Motor Vehicle Parking Services in Shenzhen, AEVa are 2-hour free of parking fee if it is parked in the government priced parking facility for the initial charging that day; meanwhile, the market priced parking facility is encouraged to offer certain parking free period and to reduce the fees or collect no fees from an AEV driver. Shenzhen is the first city in China to announced AEV parking free policy.

Kunming City (Yunnan Province)

The city allows 2-hour free parking in state-owned parking space. AEV is allowed to park in state-owned parking space for 2-hour free. Such a policy, with an intention to offer convenience to the AEV drivers, however, is restricted by many aspects. For example, the number of state-owned parking space is limited and such parking space is not identified clearly. In addition, the non-state-owned parking facility is only free to certain brands.

Xi'an City (Shaanxi Province)

Free parking for 2 hours in local parking lots is available in this city. Additionally, Xi'an offers several preferential policies for driving AEVs. First of all, AEV is exempted from normal driving restriction during the so-called winter precaution period. Secondly, AEV carrying a green license plate is allowed to run on bus lanes. Thirdly, AEV manufacturers should take necessary remote and real-time data dynamic monitoring and offer 24-hour on-going emergency services.


Liuzhou City (Guangxi Zhuang Autonomous Region)

The city grants a subsidy of electricity fee on using electric vehicles. According to CCM’s research, there are four detailed measures regarding EAV promotion as well. On the one hand, residents are encouraged to drive AEVs, supported by every 1 km driving may be subsidized with RMB0.1 for a total of 3 years. On the other hand, an AEV is allowed to park in roadside parking space for free. Thirdly, an AEV could be parked for 2-hour free in business places. And lastly, an AEV may run on bus lane and is not restricted by "odd-even license plate policy".

Chengdu City (Sichuan Province)

Parking for first two hours free. In detail, an AEV, based on its effective license plate, may park for the first two hours free in roadside parking lot and also in the public parking lot which is fully funded and constructed by the government; meanwhile, an AEV may park at halved fees from 7:00-19:00 every day in the parking lot fully funded and constructed by the government for park-and-ride. In addition, conditions for the installation of charging points must be retained in the parking lots of new residential areas, and the charging points must be set at a proportion of no less than 10%.

CCM gives the outlook, that in the near future, more and better preferential policies will be issued for driving AEV, as the number of cities involved in green AEV licensing is increasing. It is notable that most of such policies are issued in China’s 2nd-tier cities, which actually have a greater contribution to this field than 1st-tier cities. Comparatively, 1st-tire cities are relatively cautious about such policies, as they have developed the AEV market for a longer period and the car park is much larger. To date, Beijing and Shanghai have issued just a few policies distinctly favourable for AEV, in addition to those unified national policies.

About the article

The information for this article comes from CCM, China’s leading market intelligence firm for the fields of energy, chemicals, agriculture, and life science.

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