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Mobile WebSiteAn informed source said that by 2020, China's subsidies for new energy vehicles will be further reduced until the abolition of all by the end of 2020. The move will accelerate the gradual withdrawal of non-competitive electric car makers from the fast-growing sector of new energy vehicles.
Wu Zhixin, deputy director of China Automotive Technology and Research Center, said: "This plan should have been announced by the end of 2017, but was delayed for some time because of controversy." Meanwhile, Wu Zhixin was involved in the drafting of the plan.
The relevant departments, including the Ministry of Finance and the Ministry of Industry and Information Technology, have reached a consensus and have submitted the final draft for approval. I believe it will be officially announced soon.
Wu Zhixin did not disclose the specific subsidy amount for the new energy vehicles at present, but said that the subsidy policy for 2017 will be extended by four months.New energy vehicles currently running in the range of 100 to 150 kilometers can get a subsidy of 20,000 yuan but the subsidy will be canceled in 2018.
Since 2010, the Chinese government has been providing financial subsidies and other incentives to stimulate the popularity of new energy vehicles. By 2015, the Chinese government's total allowance for new energy vehicles has reached 59 billion yuan. In 2016 and 2017, the subsidy amount totaled 83 billion yuan.
Wu Zhixin said that cutting subsidies will result in faster exit of uncompetitive small car makers, but competitive companies will not be affected much. "A good brand can already get a decent discount on its own from a supplier, and some companies even increase their selling prices, but they still get the welcome of their customers."
This year China's sales of new energy vehicles will have a very satisfactory rate of growth. "As subsidies gradually decrease, new energy vehicle manufacturers will gradually raise product prices, but this will not have a big impact, because the main consumers of new energy vehicles are generally from major cities, while in large cities, The license of the ICE is very difficult to obtain.
According to the estimation of China Association of Automobile Manufacturers, the sales volume of new energy vehicles will increase by 40% in 2018, reaching 1 million. Last year, the country sold a total of 777,000 new energy vehicles, an increase of 53%.
