BYD is not pleased with the way China's "new energy vehicle" campaign is being implemented in Shanghai. The Chinese automaker has complained about the way the city is making incentives for its air pollution initiative more available to local companies. The city denies any preference.
Shanghai will be adding more than 10,000 new-energy vehicles to its fleet by 2015. The city said in an email statement that more than 30 percent will be made by automakers based elsewhere in China – without commenting on BYD's complaint. Shanghai had over 2,700 new energy vehicles in operation at the end of last year, but the statement didn't specify where the automakers who supplied them were headquartered.
Shenzhen-based BYD's senior vice president Stell Li is frustrated. "It's easier to sell our buses and cars to Sao Paulo, California or Israel than in Beijing and Shanghai, and those places have better air than China," Li told Bloomberg. "It's disheartening as a Chinese to see how local interests are holding back the adoption of electric vehicles."
Shanghai wants to speed up use of new-energy vehicles this year through its clean air action plan, according to Mayor Yang Xiong. City planners are concerned air pollution could undermine its plans to attract foreign investment and wanting to be considered a global financial and logistics center by 2020. The Chinese government revealed a new program in September that focused on three regions around Shanghai, Beijing and Guangzhou promoting the use of new-energy vehicles. The program offers subsidies through 2015. As one of the hub cities, Shanghai just announced that it will have built 6,000 charging statements between 2013 and 2015.