FB Pixel no scriptChina slashes eco-car subsidies 20% as sales rebound | KrASIA
MENU
KrASIA
News

China slashes eco-car subsidies 20% as sales rebound

Written by Nikkei Asia Published on     1 min read

Share
New-energy-vehicle market expected to reach 1.8m units in 2021.

China is reducing subsidies for new-energy vehicles by 20% in 2021 following a solid recovery in sales, moving to pull back fiscal support designed for a pandemic-battered market.

The new policy for the program, covering electric cars, plug-in hybrids, and fuel cell automobiles, took effect Friday. The subsidies are reduced by a smaller 10% for commercial vehicles including buses, taxis, ride-sharing vehicles, and waste collection trucks.

Sales subsidies for standard electric vehicles with a travel range of 300 km to 400 km per charge decline to RMB 13,000 (USD 2,012) in 2021 from RMB 16,200 in 2020. Buyers of standard plug-in hybrids get RMB 6,800 instead of RMB 8,500.

Beijing announced a two-year extension to the subsidy program last March after sales of new-energy vehicles recorded their first year-on-year drop in 2019, a slump deepened by the coronavirus. But sales apparently ended up exceeding year-earlier levels by nearly 10% in 2020, prompting the government to curb support and lighten its fiscal burden.

The China Association of Automobile Manufacturers estimates sales of new-energy vehicles at 1.3 million units for 2020 and forecasts that they will reach 1.8 million units in 2021.

New-energy vehicles made up about 5% of China’s new-auto sales in 2020. The China Society of Automotive Engineers’ road map puts forth targets of 20% in 2025 and 50% in 2035, when the other half are to be conventional hybrids.

This article first appeared on Nikkei Asia. It’s republished here as part of 36Kr’s ongoing partnership with Nikkei.

Share

Inside Grab’s SPAC mega-mergerInside Grab’s SPAC mega-merger

Insights

Grabbing the wheel: Inside the company that ran Uber off the road en route to the largest SPAC merger ever

By Brady Ng

  

  14 Apr 2021    10 mins read

See All

Auto loading next article...

Loading...