Signs this week that China is scaling back its green transport revolution look ominous for the fledgling electric vehicles (EV) industry and its suppliers.
There are now more cars on Chinese roads than in any other country, with China representing over half of global growth in the automotive market.
But those hoping China’s appetite for the motor vehicle would dovetail with a move towards electric and hybrid cars are likely to be disappointed in the near term.
China announced plans in 2010 to spend Rmb 100bn ($15.6bn) to convert the public to HEVs and EVs.
But last month, in an article for a Communist Party journal, Chinese prime minister Wen Jiabao called for a re-think on the country’s EV strategy, which is seen as a way to reduce...