China Cuts Electric Car Subsidies by 30% in 2019

China Cuts Electric Car Subsidies by 30% in 2019-cuts

The Chinese Government is Expted to Cut Subsidies for eV Purchases by About A Third in 2019, Which Could Add Downward Pressure On Already Slowing Economy. In The Coming Year, The Subsidy for E-Cars is to Be Completely Abolished. In This Way, China Wants to Ensure That The Automobile Manufacturers Themselves Lower Costs and Become More Competitive.

IT Can Be Assumed That in 2019 The Subsidies Will Be Reduced By A Good 30% Compared To the Previous Year. This What Understood by A Representative of the Chinese Association of Automobile Manufacturers. The Forecast Itself What Confirmed By The Securities Times Published Under The Official People’s Daily. The Automobile Manufacturers Themselves Are Not Particularly Pleased. BECAUSE One Has To Assume That If the Subsidies for Popular Models Are Sharply Reduced, Sales Could Drop.

China Is Already Canceling Tax Subsidies for Numerous Models With Electric And Plug-in Hybrid Drives in May 2018. In July, Rumor’s Arose That, According to Information from Bloomberg, A Further Tightening of the Subsidy Rules for E-Cars Would Be Implemented. When The Law What Last Tightened, E-Cars With A Range Of Less Than 150 km Were No Longer Fund. This Limit Should Now Probably Be Increased to 200 km. This Suggestes That The Chinese Government is Continuing to Use The Subsidies to Model Vehicle Sales to Some Extent.

Currently, for a compact Electric Model That covers 150 km on One Charge, This Means a Subsidy of 15.000 yuan (1.920 Euros) – 60% Less Than 2017, Received. But Medium-Sized and Large Electric Cars With A Range Of 400 km Got A 10% InCreased Subsidy From Just Over 50.000 yuan (6.397 Euros).

IF The Central Government Cuts Subsidies, Local Governments Will Follow In Their Separately Administered Programs. The Burden On Consumers Could Increase Significantly. AROUND 28 MILLION NEW CARS ARE EXPECTED TO BE SOLD IN CHINA THIS YEAR. The So-Called New Energy Vehicles Would Account For 1.2 million units, up 50% from Last Year.

The Chinese Government Tod Like To Encourage Manufacturers to Push Ahead With The Development of Electric Cars and, Above All, Their Range. AS of Today, Chinese Manufacturers Are Not Taking A Fixed Path, But Are Keeping Various Drive Alternative Open. However, The “Made in China 2025” initiative position New Energy Vehicles as a priority. It Is Planed That They Will Account For 20% Of ALL NEW CARS SOLD THIS YEAR.

Related articles

Please follow and like us:

Leave a Comment