China will reduce subsidies for new energy vehicles (NEVs), such as electric cars, by 30% by 2022 and withdraw them altogether by the end of the year, the finance ministry said on its website on Friday.
According to Reuters, the ministry had stated in April 2020 that NEV subsidies would be cut from 2020 to 2022 by 10%, 20% and 30% respectively.
China, the world’s largest car market, has set targets for NEVs, including plug-in hybrids and hydrogen fuel cell vehicles, to account for 20% of car sales by 2025.
Global automakers such as Volkswagen, General Motors, Toyota and Tesla are increasing production of electric vehicles in China.
The carmaker NIO said Friday that buyers of ES8, ES6 and EC6 vehicles who had paid up to 31 December 2021 and received their purchases before 31 March 2022 could still enjoy the subsidies under the 2021 plan. Any deficit under the 2022 policy will be borne by the Shanghai-based company, he said.
The ministry also said China would step up oversight of NEV safety issues to prevent accidents.
The China Association of Automobile Manufacturers estimated earlier in December that sales of NEVs in China would increase by 47% to 5 million in 2021.
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Source From: Capital
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