Currently, the German car manufacturers do not have enough models to meet the Chinese quota.
Manfred Witt / obs / LichtBlick SE / picture-alliance
In a preliminary report in WirtschaftsWoche, the German Embassy in China is quoted as saying, "On the issue of the NEV (New Energy Vehicle) credits quota, a satisfactory solution has been achieved for German car makers." It appears as if German car makers may receive special treatment.
The Chinese electric car quota stipulates that, from 2018, eight percent of the cars sold there will have to be equipped with an electric drive, either all-electric or hybrid. The quota scheme is to be regulated by a points system and possible fines. Not only German car makers were outraged at the scheme; car associations from the USA, Europe, Japan and South Korea had also spoken out against the Chinese government’s plans in a letter.
Important export market for OEMs
The Chinese car market grew to mark sales of 24 million vehicles in 2016 and is an important export market for German car makers. The VW Group sells four out of ten cars in China, for instance. From the report in WirtschaftsWoche, it is uncertain whether the amended plans should apply to other foreign OEMs as well.