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By Yin Lei

More supportive measures are in the pipeline for China’ new energy vehicle (NEV) manufacturers, as reported by the Economic Information Daily on Monday.

These measures, enacted by the National Development and Reform Commission (NDRC), China’s economic planner, aim at further promoting technological innovations and novel business models in the NEV sector.

The NDRC recently completed the collection of public opinion on its new administrative rules for automobile investments, which put stringent limitations on the production of cars using conventional fuel.

These draft rules prohibit new investments into some oil-fueled car manufacturers as well as the establishment of new companies of this kind. Those hoping to expand their existing production capacity must meet strict requirements on capacity utilization and R & D expenses, among others.

The threshold for entering the NEV sector has been heightened. The NEV companies should have the ability to conduct sustainable research and development, and their new NEV projects must have the capacity to produce at least 100 thousand electric passenger cars or 5,000 commercial ones. Shareholders of these companies are also bound by multiple requirements on the time horizon, track record and shareholding ratio, etc.

These new rules will greatly boost the confidence of manufacturers, investors and consumers in the NEV market, and improve its development quality, experts believe. NEV companies will direct more resources to product development and technology progress as they compete with each other and only those strong enough will survive.

Smart NEVs will see good news too. The NDRC is also working on a development plan for smart NEVs to boost their technological progress and business innovations.

Many car manufacturers are already on the move. The Foton Motor Group, one of China’s leading commercial car manufacturers, has worked with the Ping An Insurance (Group) Company of China, Ltd. on a solution that marries the blockchain technology with supply chain finance.

Others are venturing into logistics services based on smart NEVs. The Beijing Automotive Group Co., Ltd set up a business that offers a full range of smart experiences covering transport, tour, and entertainment.