China mulls lowering threshold for manufacturing new energy vehicles  

(ECNS) -- The threshold for manufacturing new energy vehicles is an obstacle, with only two or three domestic enterprises capable of meeting requirements, according to Chen Quanshi, head of the Automobile Research Institute of Tsinghua University.

According to National Development and Reform Commission (NDRC), the basis of clean energy car manufacturing capability is professional R&D (research and development) competences and at least three years' research experience on solely electric passenger vehicles. In addition, enterprises must also have relevant intellectual property rights and patents for inventions.

Newly formed companies can only produce pure electric vehicles. Plug-in hybrid electric vehicles (PHEV) are not included in their remit, the NDRC has said.

Wu Zhixin, vice director of the Chinese Mobile Research Center, added, "The standard of manufacturing new energy vehicles seems relatively strict; however, enterprises can achieve this through purchasing or cooperating with other companies."

Wanxiang Group, China's largest auto parts company, has undertaken extensive planning, with the aim of gaining manufacturing qualifications for clean energy vehicles.

Some major IT companies have signed contracts with auto enterprises, such as the cooperation inked between Huawei and Dongfeng Motor. China's budget smartphone maker Xiaomi is also said to be planing the production of new energy cars.

Insiders said China's policy-makers have realized that traditional auto enterprises are often constrained by policies and their own resources. "NDRC plans to let new players onto the market to see if China could create its own version of Tesla Motors."

With a number of government incentives in effect, sales of new energy vehicles reached 5804 in October while production of clear energy cars totaled 47,000, a nearly five-fold increase over the same period in 2013, according to Ministry of Industry and Information Technology data.