Friday, January 21, 2022

China cuts EV subsidies by 30 %, planing to eliminate all Subsidies in 2023

China has cut government subsidies for private New Energy Vehicles by 30 per cent from 2021 with the new year. From 31 December 2022, government NEV subsidies in China will be completely eliminated.

This was announced by the Chinese Ministry of Finance. The move did not come as a surprise: the Chinese government had already sharply cut NEV subsidies in March 2019 and planned to phase them out as early as 2020. As the market subsequently collapsed, the subsidy was extended – but further cut. Most recently, it was cut by 20 per cent at the turn of 2020/2021.

The Ministry of Finance does not mention the specific subsidy rates for 2022 in the communication, but only the percentage cut. In 2021, a battery-electric car with a range of 300 to 400 kilometers was still eligible for 13,000 yuan, so now it should only be 9,100 yuan. That corresponds to the equivalent of 1,270 euros. The other requirements such as price limits and technical data – for example, range and energy consumption – remain unchanged for 2022.

The 30% that has now been made applies to passenger cars. For other sectors, such as city buses, taxis, logistics and postal services, but also the fleets of ministries, the subsidy rates were cut by 20 per cent at the turn of the year.

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Hi I'm Leanne. I'm a big fan of electric cars (drive a Model 3 myself) and support the movement to go electric! I hope you enjoy my Articles here on the website.
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