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China reduces electric car subsidies

Christian Fernsby ▼ | March 28, 2019
China has announced its plans to reduce subsidies for electric cars sold in the country.
China cars
Asia   China’s Ministry of Finance announced the changes in a statement
China’s Ministry of Finance announced the changes in a statement on its website, noting “The subsidy for pure battery electric cars with a driving range of 400 kilometers (250 miles) and above will be cut by half, to CNY 25,000 (USD 3,700) per vehicle from CNY 50,000.

Electric cars must now have a range of at least 250 miles to qualify for any subsidy.”

China hopes the move will encourage innovation and improved technology to sell EVs.

The ministry listed a number of goals for high-quality development of new energy vehicles, beyond reducing subsidies.

There will be also be a transition period running for the next three months regarding local government subsidies.

After that period, those subsidies should be removed from electric car purchases and instead applied to infrastructure.


 

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