The Chinese government may allow car makers to defer their new energy vehicle quotas to next year.
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The Chinese government is considering a temporary relaxation of its electric vehicle manufacturing targets to help the car industry there recover following the COVID-19 pandemic, according to a new report.

All manufacturers that produce cars in China must adhere to strict new energy vehicle (NEV) targets that involve building electric, plug-in hybrid, and hydrogen fuel cell cars.

Producing NEVs earns the brands ‘green points’. These points can be used to offset the production of conventional internal combustion engines, which cost the car makers green points.

As reported by news agency Reuters, the Chinese government’s industry ministry will look to “temporarily adjust the quotas” for green points, allowing manufacturers to spend the amount they are poised to earn in 2021 across the remainder of 2020.

China’s move follows considerations in April to temporarily defer mandating a new emissions device for internal combustion engined cars by up to six months.

With the push for more electrified cars in China, manufacturers have dedicated more resources into the technology, with little incentive to improve efficiency of their internal combustion – and most profitable – engines.