CRI听力:China to Enhance Support for Eco-vehicles

A lack of charging piles and stations in urban areas is hindering the promotion of the use of electric vehicles.

To solve the problem, the Chinese government is now requesting in a State Council statement earlier this week that all parking lots in new residential areas should install charging facilities or leave space for future construction. No less than 10 percent of parking lots in large public buildings or public car lots are also required to have charging facilities.

Wang Yuanhong with the State Information Center says the new measure will both promote the growth of the new energy vehicle sector and benefit local residents:

"While the automotive industry has hit a bottleneck since the end of 2014, the production and sale of new energy vehicles, especial electric vehicles shows a good performance. This indicates the future trends in auto industry. So building more charging facilities for electric vehicles will attract more investment and promote auto sales. It also will improve public facility construction and thus benefit locals."

The new energy vehicle sector in China is soaring, with sales surging 270 percent to 108,654 units in the first eight months of this year, says the China Association of Automobile Manufacturers.

Cui Yan, an auto analyst from Minsheng Securities believes increasing the investment in charging facilities could lead to more benefits:

"Places like Beijing and Shanghai have used a series of favorable policies to promote buying of new energy vehicles, such as giving subsidies, tax cuts and free license plates. So building charging facilities is way to promote the use of new energy vehicles. I think government support is a necessary for the growth of new energy sector. It has proved to be true in foreign countries. New energy vehicles will be a substitute in auto industry and become a pillar for national economy."

Yang Weixiao, an analyst from Fangzheng Securities echoes with Cui Yan that investing in charging facilities will benefit market in the long term.

"I think the investments on charging facilities are comparatively small, so it may not directly affect national economy. But it has long-term effects, which I think it will promote the development of a new market."

The Chinese government is also encouraging private investment in the projects, with the allowance of favorable financing options for construction projects.

According to the National Energy Administration of China, charging piles equipped in China will reach 4.5 million units by 2020.

For CRI, I'm Guo Yan.