China to cut new energy vehicle subsidies by 30% in 2022

Image credit: REUTERS / Aly song

The Treasury Department said on its website that China would reduce its subsidies for new energy vehicles (NEVs), such as electric cars, by 30% in 2022 and withdraw them by the end of the year.

From 2020 to 2022 the subsidy for NEVs will be reduced to 10%, 20% and 30% respectively. For NEVs for public transport, the subsidy will be reduced by 10% in 2021 and 20% in 2022.

China, the world’s largest auto market, has set a target for NEVs, including plug-in hybrid and hydrogen fuel cell vehicles, to generate 20% auto sales by 2025.

Global automakers such as Volkswagen AG (VOWG_p.DE), General Motors Co. (GM.N), Toyota Motor Corp (7203. T) and Tesla Inc (TSLA .O) increase production of electric vehicles in China.

NIO (NIO.N) said on Friday that buyers of its ES8, ES6 and EC6 vehicles have posted deposits before December 31, 2021 and delivered their purchases before March 31, 2022, they can still avail the subsidy under the 2021 scheme. Is.

Any loopholes in the 2022 policy will be addressed by the Shanghai-based company, he said.

The ministry also said that China would strengthen surveillance on the safety issues of NEVs to prevent accidents. The China Association of Automobile Manufacturers had earlier in December estimated that sales of NEV in China would increase by 47% to 5 million by 2021.

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