The Chinese ministry for industry has announced further eliminations from their list of vehicles eligible for subsidies: This time 272 electric and hybrid vehicles will no longer be subsidized, because they had not entered production/been imported by the end of August.
This mainly addressed buses and logistics vehicles, which had not entered production on time because of the slashing of subsidies. They will no longer benefit from tax subsidies at this point.
In May, the ministry had struck the first vehicles from their subsidy list. At the time, it had also only concerned vehicles which were not in production or had not been imported either.
The cancellation of tax subsidies had been part of the governments plan to lower the costs for their extensive NEV subsidy plans, with the aim to completely shut them down by 2020. The subvention program had initially been somewhat abused by manufacturers, with a 2016 investigation leading to 25 manufacturers being accused of abusing the tax subsidies.
China’s government has been notably less generous since then. This was also noticeable in this year’s subvention plans. The subventions themselves were refined to aim more towards improved battery capacities and energy efficiency, which resulted in vehicles with less than a 150 km range not receiving any subsidies anymore, effective this year, while subventions for vehicles with more than 300 km range have increased. The trend will likely continue next year, as the rulings are further refined. Minimum range for receiving a subsidy will likely stand at 200 km next year.
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