China wants to build one million electric cars a year by 2020

China has announced plans to make life a lot cleaner for the region by ramping up its electric car production to one million vehicles a year by 2020.

China's Minister of Science and Technology, Wan Gang, unveiled the plan last week, as an extension of an existing scheme whereby individual buyers of new electric cars can claim hefty subsidies of up to 60,000 yuan (US$9,000) from the central coffers. 

Biggest global car market

To put the goal of one million electric cars in context, China is now the largest global car market, with sales of 13.6 million vehicles in 2009.

That number is still growing, according to latest statistics that suggest 2010 will be another banner year for car dealers across China.

With gasoline-powered cars responsible for an estimated 70 percent of airborne pollution in China’s cities, the move -- along with equally ambitious schemes to improve public transportation -- is being welcomed as a timely intervention.

Program doubters point to the continuing problem of generating the electricity needed to power the new vehicles. Speaking on the issue before the latest announcement, IEA executive director, Nobuo Tanaka, said, “China’s problem is to how to supply electricity carbon-free, as [it] now heavily relies on coal.”

Greenpeace has stated that “an increase in electric cars is likely to lead to greater production in nuclear power plants, gas and coal, without necessarily reducing gasoline demand for classic cars.”

According to Minister Wan, private investors have already spent the equivalent of US$1.3 billion on the electric car industry, but estimates that the Chinese government will need to add US$15 billion over the next 10 years if the plan is to succeed.