China will cut subsidies for new energy vehicles (NEVs), such as electric cars, by 30% next year, the Ministry of Finance said on Friday.
The ministry said on its website that next year’s NEV subsidy policy will end on December 31, 2022, and NEV will not be subsidized thereafter.
The ministry had said in April 2020 that subsidies for new energy vehicles would be cut from 2020 to 2022 by 10%, 20% and 30%, respectively.
For NEVs for public transport, subsidies would be cut by 10% in 2021 and 20% in 2022.
The world’s largest auto market, China has set a target for electric vehicles, including plug-in hybrids and hydrogen fuel cell vehicles, to reach 20% of auto sales by 2025.
Global automakers such as Volkswagen, General Motors, Toyota and Tesla are ramping up production of electric vehicles in China.
The ministry also said that China will increase oversight of NEV’s safety issues to prevent accidents.
The China Automobile Manufacturers Association estimated earlier this month that sales of NEVs in China would grow 47% to 5 million this year.
Reference: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
