China Announces Rules for New Alternative-Energy-Vehicle Makers
By Bloomberg News
June 25 (Bloomberg) -- China, seeking to damp competition among automakers, announced market-entry rules for companies wanting to build alternative-energy vehicles.
Licenses for making alternative-energy vehicles will only be awarded to companies that have the capacity to design and develop such models, the Ministry of Industry and Information Technology said in a statement on its Web site today.
The Chinese government has drawn up measures to help automakers as they struggle to turn surging domestic demand into profits. The nation’s 14 biggest automakers are also due to be merged into 10 to boost margins and help companies fund research into new models, including hybrid and electric cars.
Alternative-energy automakers must also set up their own procurement systems for purchasing parts under the rules, which come into effect from July 1.