China Takes Aim at Reputation for Cheap Exports With EV Permits

Electric vehicles bound for shipment at the Port of Taicang in China.

Source: Bloomberg

China’s requirement that automakers get permits to export electric vehicles ramps up a push to tighten control of the sprawling industry and help the country fend off accusations that it’s flooding the global market with cheap cars, according to analysts.

From the start of next year, car manufacturers will require export licenses for EVs, bringing them in line with existing rules for gasoline and hybrid vehicles. The move is designed to restrict the export of low-quality products, prevent dumping and drive companies to compete on technology rather than price, Cui Dongshu, secretary general for the China’s Passenger Car Association, wrote in a WeChat post on Saturday.