China: Less money for buying an e-car

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China: Less money for buying an e-car-less

Lower subsidy rates for electric cars and plug-in hybrids have been in force in China since the turn of the year. It hits private individuals particularly hard. At 20 percent compared to 2020, the reduction is twice as high as announced in spring. Originally, however, the subsidies were to expire completely at the end of 2020.

After years of strong state support and increasing sales figures, the Chinese government had meanwhile sought to completely abolish subsidies and tax breaks for new energy vehicles (BEV, PHEV and FCEV) at the turn of the year – under the impression of the corona pandemic and due to declining market development, Beijing decided in April 2020 but then an extension until the end of 2022. At that time it was still said that the subsidies should be reduced by ten percent each year.

According to reports in the Chinese media, however, the ten percent reduction only applies to vehicles in commercial or public use. Private individuals must expect deductions of 20 percent. In concrete terms, pure electric vehicles with a range of 300 to 400 kilometers will only be subsidized in the current year with the equivalent of around 1640 euros instead of the previous 2040 euros. Private buyers of plug-in hybrids receive around 860 instead of 1070 euros.

The technical specifications remain unchanged. Electric cars must have a minimum range of 300 kilometers and plug-in hybrids must have an electric range of 50 kilometers or more. There are also specifications for batteries and energy efficiency. The upper price limit of the equivalent of almost 38, which has been in force since mid-2020, is not explicitly mentioned in the media reports.000 euros.

The government has been correcting the originally lavish subsidy rates downwards for a long time because they had led to abuse. In 2016, a total of 25 car manufacturers were suspected of having committed fraud with subsidies for e-cars. Since then, the Chinese Ministry of Industry has “cleaned up” the list of eligible models several times. The most drastic step came in mid-2019 when the central government halved subsidies and radically curtailed local payments.

As a result, unsurprisingly, new registrations of new energy vehicles have fallen sharply since mid-2019. Only a strong first half of 2019 prevented the NEV market from recording major losses over the year as a whole – the minus was four percent. In the first half of 2020, the Corona crisis added temporary closures of plants and dealers. In the first three months, NEV registrations fell by more than half year-on-year to 114, according to the Chinese Automobile Association.000 vehicles back. However, as of the second quarter of 2020, the industry recovered. In the first eleven months of last year, a total of 1.1 million NEV vehicles were sold in China – an increase of 3.9 percent compared to the same period in 2019.

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2 thoughts on “China: Less money for buying an e-car”

  1. What a shout! 20% less subsidies! That’s just 400 euros for private customers and 200 euros for commercial customers. at z. B. 40 kWh battery capacity is 10 euros per kWh. But that’s the price drop in batteries that takes place every year anyway (or less). So there is no need to blow the whistle: the subsidy is reduced so much that it effectively remains the same as before.

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  2. I find this subsidy policy extremely intelligent. At the beginning, desired developments are pushed and promoted. So there are enough who are willing to go this way. As things get going, the subsidy is reduced and finally there is no more. That was once in D. exactly the same with the introduction of the exhaust gas catalytic converter.

    In addition, the subsidy is linked to criteria that guarantee that the intended effect will also be achieved – here the current range, price cap and technically sensible parameters.

    Very worth imitating. The regulations in D. I find it TOO generous (the upper price limit and technically sensible criteria are not specified).

    But it is also interesting that misuse was possible there too..

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