China's New Rules Will Punish Automakers Who Don't Meet Electric Quota
"
China has skipped its 8% New Energy Vehicle (NEV) credits quotas, but in 2019 and 2020 it will require all manufacturers that produce and sell more than 30,000 cars annually to get respectively 10% and 12% in New Energy Vehicle credits.
The new requirements don’t mean that each manufacturer needs to sell 10% plug-in cars, because from a single sale of a New Energy Vehicle a manufacturer can get from 2 to 6 credits.
Assuming that a manufacturer will sell plug-ins for 2 credits each, it will need to electrify at least 5% of its volume. If the company manages to get the maximum of 6 credits per car, then only about 1.7% of the volume will need to be electrified in 2019.
For example, for every 100,000 cars sold, the company needs to get 10,000 NEV credits in 2019, which translates to 1,700-5,000 plug-ins that fulfill the requirements."
More in depth explanation in link