According to the China Association of Automobile Manufacturers, China surpassed the United States to become the world’s largest automobile market in 2009 with a record 13.9 million vehicles sold in the country, compared to 10.43 million cars and light trucks sold in the United States. There is a quickly growing demand for transport in China as more people can afford to buy cars. To support its commitment to encourage electric-vehicle development the government will provide US$15 billion to the industry. Their intention, in addition to creating a world-leading industry that will produce jobs and exports, is to reduce urban pollution and decrease its dependence on oil. As such, government’s goal is to have five million battery-electric and plug-inhybrid electric cars on the road by 2020, while also producing one million such vehicles annually by 2020.
The government has established a policy framework to accelerate electric-vehicle technology development, while encouraging market transformation that will support research and development, regulate the industry and encourage consumption.