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rolled out its long-anticipated "half marks for conventional hybrids" policy. #EV #BEV h/t @KawasakiKR11, @Dope007 https://www.nikkei.com/article/DGXMZO60638140S0A620C2FFE000/
2/ New Energy Vehicles (BEVs, PHEVs, FCEVs) earn multiple NEV credits (depending on range etc.) and each year your credits must meet a rising percentage of sales.
3/ Realizing that NEVs (~5% of sales) weren't the only way to reduce oil consumption and tailpipe emissions, China is encouraging conventional hybrids (so as not to completely ignore the other 95%). https://www.reuters.com/article/us-china-autos-hybrid/china-considers-limited-support-for-petrol-electric-hybrids-in-boon-for-toyota-honda-idUSKCN1U70LH
4/ NEV sales plunged when incentives were reduced (long-threatened, incentive cuts were often postponed), hindering progress on the 5%... https://www.reuters.com/article/us-china-autos-electric/china-wants-new-energy-vehicle-sales-in-2025-to-be-25-of-all-car-sales-idUSKBN1Y70BN
5/ While regular hybrids (HEVs) were doing just fine. Very modest up-front premium, ongoing gas savings. https://www.bloomberg.com/news/articles/2019-11-28/japanese-hybrids-are-beating-the-slump-in-china-s-car-market
6/ Now, instead of being counted as equivalent to any other ICE vehicle, it seems regular hybrids will only count as:
0.5x an ICE vehicle in 2021
0.3x in 2022
0.2x in 2023
0.5x an ICE vehicle in 2021
0.3x in 2022
0.2x in 2023
7/ Net-net, the more hybrids you sell, the fewer NEVs you need to build. This will slow the rate of NEV adoption, but it'll still reduce emissions (vs people buying non-hybrid ICE vehicles). It remains a win for and the environment ... and maybe most of all, Toyota?
and the environment ... and maybe most of all, Toyota?
8/ Toyota opened its hybrid patents up last year, paired with engineering consulting assistance to help other OEMs adopt the technology. https://www.reuters.com/article/us-toyota-patents/toyota-to-give-royalty-free-access-to-hybrid-vehicle-patents-idUSKCN1RE2KC
9/ More than 50 OEMs came calling. Toyota has entered a kind of quantum state where it's both an OEM and a major Tier 1 supplier. https://www.autonews.com/automakers-suppliers/toyota-sees-opportunities-leveraging-hybrid-tech
10/ VW and GM plan to do similar things with their EV technology. Corporate relationships could make for some crazy "quantum entanglements" down the road!
11/ Now Toyota can sell cars *and* participate in the value chain of competitors porting the technology into their own vehicles. Just seems like a big deal. As always, no investments in or business dealings with Toyota or any other companies mentioned above.
