China has announced a cut to its subsidies on new energy vehicles (NEVs), effective immediately. It’s been something of a rollercoaster ride for the subsidies of late. In 2015, the government announced plans to end the subsidies this year. In January, it said there would be “no significant cuts” this year. In March it confirmed they would be extended, but warned of a possible reduction.
Under the new plan, purchase subsidies for NEVs, which include
PHEVs and fuel cell vehicles, will drop 10% this year, 20% in 2021, and 30% in
2022. Tax exemptions on purchases will be extended for two years. Subsidies on
commercial NEVs for public purposes will not be reduced this year.
The details of the plan appear to have created some winners
and losers. The authorities plan to support the sale of cars with swappable
batteries, a technology that Chinese EV-makers Nio and BAIC BluePark have
pursued.
The government has tightened requirements for the driving
range, power efficiency and sales prices of cars that qualify for the subsidies.
Only passenger cars costing less than 300,000 yuan ($42,376) will be eligible.
That excludes some higher-priced EVs sold by BMW and Daimler. It also edges out
Tesla’s China-made Model 3, which is currently priced at 323,800 yuan before
subsidies. Will Tesla reduce the price in order to let buyers benefit from the
subsidies?
Sales of NEVs contracted for the 9th month in a row in March,
and were down over 50% from a year earlier, according to the China Association
of Automobile Manufacturers.
Source: Reuters
Image: mariordo59 (CC BY-SA 2.0)
China has announced a cut to its subsidies on new energy vehicles (NEVs), effective immediately. It’s been something of a rollercoaster ride for the subsidies of late. In 2015, the government announced plans to end the subsidies this year. In January, it said there would be “no significant cuts” this year. In March it confirmed… Read more »
China has announced a cut to its subsidies on new energy vehicles (NEVs), effective immediately. It’s been something of a rollercoaster ride for the subsidies of late. In 2015, the government announced plans to end the subsidies this year. In January, it said there would be “no significant cuts” this year. In March it confirmed they would be extended, but warned of a possible reduction.
Under the new plan, purchase subsidies for NEVs, which include
PHEVs and fuel cell vehicles, will drop 10% this year, 20% in 2021, and 30% in
2022. Tax exemptions on purchases will be extended for two years. Subsidies on
commercial NEVs for public purposes will not be reduced this year.
The details of the plan appear to have created some winners
and losers. The authorities plan to support the sale of cars with swappable
batteries, a technology that Chinese EV-makers Nio and BAIC BluePark have
pursued.
The government has tightened requirements for the driving
range, power efficiency and sales prices of cars that qualify for the subsidies.
Only passenger cars costing less than 300,000 yuan ($42,376) will be eligible.
That excludes some higher-priced EVs sold by BMW and Daimler. It also edges out
Tesla’s China-made Model 3, which is currently priced at 323,800 yuan before
subsidies. Will Tesla reduce the price in order to let buyers benefit from the
subsidies?
Sales of NEVs contracted for the 9th month in a row in March,
and were down over 50% from a year earlier, according to the China Association
of Automobile Manufacturers.
Source: Reuters
Image: mariordo59 (CC BY-SA 2.0)
China has announced a cut to its subsidies on new energy vehicles (NEVs), effective immediately. It’s been something of a rollercoaster ride for the subsidies of late. In 2015, the government announced plans to end the subsidies this year. In January, it said there would be “no significant cuts” this year. In March it confirmed… Read more »