China’s central government is increasing EV subsidies for electric cars travelling 150 km+ on a single charge but in turn makes this the new threshold EVs have to cross to become eligible for funding. At the same, the grant for long-range EVs from 400 km has been raised.
China has been overhauling its PEV policies and has set a new benchmark with rules favouring long-er range electric vehicles. The federal incentive for electric cars that have a range of 400 kilometres and beyond on a single charge has been raised to 50,000 yuan (6,390 euros) up from 44,000 yuan.
At the same time, electric cars have to be able to drive at least 150 kilometres all-electrically on a single charge to be eligible for incentives, up from 100 kilometres.
The new rules have gone into effect on February, 12, the Ministry of Finance said in a statement. They also cut subsidies for cars with a driving range of less than 300 kilometres. Furthermore, the benchmark for battery energy density has been set above 105Wh per kilogram, up from 90 watt-hours per kilogram previously.
The government in Beijing also cut subsidies by as much as half for buses that qualify as new-energy vehicles, depending on their length and the nature of the drivetrain.
In the latest rule, the central government has asked provinces to curb protectionism. Still, Beijing is pondering whether to curb or keep local EV subsidies in addition to the federal incentive (we reported).
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