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China to Ban Local EV Subsidies
China’s central government plans to order an end to local government subsidies for electric cars, mainly because the incentives often favor local EV manufacturers.
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China’s central government plans to order an end to local government subsidies for electric cars, mainly because the incentives often favor local EV manufacturers.
Bloomberg News cites sources who say the Ministry of Finance also wants to cut local spending on the payouts for so-called new-energy vehicles. One source says the streamlined program could begin early next year.
The government subsidies are being paid to manufacturers rather than buyers. Their purpose is to help producers offer plug-in hybrids and EVs at lower prices. But regional programs also can be configured to give local companies an advantage over rival EV makers in other parts of China.
Bloomberg’ says the China Passenger Car Assn. estimates that, by the end of this year, China’s central government will have spent more than 140 billion yuan ($21 billion) on incentives for new-energy vehicles.
Sales of electrified vehicles in China could soar beyond 1 million units in 2018 compared with about 700,000 units this year, according to the China Assn. of Automobile Manufacturers.
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