What is the big difference between China and the West when it comes to electric cars? Most Chinese citizens don’t live in private houses and therefore have to rely on external charging stations for their electric cars.
That’s why having a strong top-down approach to rolling out a new technology comes in handy. The State Grid Corporation - China’s (state-owned) largest electric transmission company – is rumored to thinking of introducing an electric pricing system for electric cars (in addition to those used for private, agricultural and industrial purposes) – not a small feat given the heterogenous technologies on the market and its evolutive nature. Help will be provided by the China Electricity Council’s efforts of standardization and by the arrival in the sector of other state-owned firms seeking to diversify.
Industrial policy does come handy at time – electric cars is one of China’s seven strategic emerging industries - something that must give some hope to firms like BYD whose prospects tended to look rather bleak lately.