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There were also government quotas in place that required all manufacturers in China to produce a minimum quota of “New Energy Vehicles” (NEVs) in order to competitively operate in the country.

Such regulations were often perceived as unreasonable by automakers, as exemplified by Prof. Dr. Ernstberger when commenting about minimum quotas for manufacturing of electric vehicles: “Ten and 12 percent quotas to be reached by everyone in 2019 and 2020. Ten percent of 500,000 cars, which is what we are selling in China in the present, is quite a number: 10,000 electric vehicles when assuming five NEV credits per vehicle. ” To make matters worse, the rules sometimes changed unexpectedly, as Dr. Ernstberger reported: