The dual-credit policy for passenger vehicle companies went into force on April 1st this year and targets car companies that produce or import more than 30,000 vehicles annually. Manufacturers worry that the new policy will make it increasingly difficult to make large-displacement vehicles, since these vehicles may exceed the fuel consumption limits and therefore not be eligible for credits.

However, government officials expect the dual-credit policy to spur market growth by increasing the number of NEVs available resulting in greater consumer choice and lower prices. Chinese car buyers can also expect improvements in overall NEV quality.