Driven by four global mega trends—reducing carbon emissions, oil concerns, growing congestion, and rapid technology advances—countries worldwide are focusing strongly on vehicle electrification with China emerging as an important test-bed for innovation, said the World Bank in a recent report.

"From policy to technology to new business models, China is innovating on all the building blocks needed to successfully deploy electric vehicles (EVs)," said Ede Ijjasz, Sustainable Development Manager for the World Bank in China and Mongolia.

Currently, Chinese policies promote electric vehicles through purchase subsidies, which is not unusual at this stage of market development. Looking ahead, policies will need to support institutional and technological innovation, vehicle-charging infrastructure and manufacturing capacity, said the World Bank.

The infrastructure and technology for charging electric vehicles in China focus on buses, trucks or taxis. However, as private car demand rises, integrated battery charging solutions will be needed to ensure that vehicle charging is safe, does not disrupt the electrical grid, and provides quality service to consumers.

As the industry matures, new common standards for charging, safety and battery disposal will be needed for both manufacturers and consumers.

Developing common standards within China, where there are fewer larger utilities, should be easier than in other countries. The State Grid Corp. of China has established charging standards, but these differ from U.S. and European standards which would add to costs and inhibit access to global markets, it said.