China Getting More Bullish On Electric Vehicles

China is providing more support for electric vehicles as it aims to increase more than half the ratio of purchases of new energy vehicles, a move that would cut down the smog released from gasoline vehicles. The latest development is positive for electric car maker Tesla Motors Inc TSLA, which is investing heavily on new battery technologies that would store more energy.

The number of new energy vehicles purchased by the central government and local governments where the policy is promoted should account for more than 50 percent of the total new vehicles, according to a statement from China's State Council executive meeting, presided over by Premier Li Keqiang. The ratio was set at 30 percent in July.

The Chinese government plans to expand the application proportion of new energy vehicles in urban public transport, taxis and logistics of transportation achieve revolutionary breakthroughs in power batteries.

China also aims to improve the infrastructure for battery charging. More facilities are expected to be built in residential districts, parking lots of enterprises and airports. The central government will support the initiative through budgetary investment and special financial bonds on power distribution networks.

The State Council also urged the improvement of entry standards, strengthening quality supervision, integrating new energy vehicles with the Internet of Things, as well as establishing mechanisms such as punitive compensation.

In addition, China plans to roll out financial subsidies for buying electric vehicles and said new energy vehicles are not subject to purchase quotas or certain traffic control measures.