China Cuts EV Subsidies To Push Innovation

March 28, 2019 I am Renew 0 Comments BYD, China, Electric Cars, EV Sales, NIO, Subsidies, Tesla

After a huge spike in sales of electric vehicles, China has announced plans to reduce subsidies for electric vehicles sold in the country

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China said it’s scaling back subsidies on electric vehicles to encourage local manufacturers to rely on innovation rather than government assistance as the industry matures and costs fall. However the cuts were steeper than expected 30%. The cuts are a reminder of the ‘531’ policy the government announced for the solar sector, when it cut back subsidies massively for solar manufacturers on May 31 with little warning.

Now, the subsidy for pure battery electric cars with driving ranges of 400 kilometers (250 miles) and above will be cut by half, to 25,000 yuan ($3,700) per vehicle from 50,000 yuan, the Ministry of Finance said in a statement. To qualify for any subsidy, electric cars need to have a range of at least 250 kilometers, compared with 150 kilometers previously, the ministry added.