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On November 20th, the Department of Economic Construction of the Ministry of Finance issued the “Provision of the Local Distribution Result of the 2020 Energy Saving and Emission Reduction Grant Fund Budget in Advance”. The results show that the 2017 new energy vehicle promotion and application subsidy funds totaled about 16 billion yuan; 2018 energy conservation and new energy bus operation subsidy funds totaled about 15.3 billion yuan; a total of 31.3 billion yuan.
Among the subsidies issued this time, the operating subsidies accounted for nearly 50%. The Xinjiang Corps, Tibet, Ningxia, Qinghai, Xinjiang, Hainan, Tianjin, Gansu and Qingdao are all operating subsidies, and more than 76% of the regional operating subsidies exceed the purchase subsidies. From this point of view, the operation subsidy (the “Notice on Improving the Promotion of Urban Bus Product Oil Price Subsidy Policy to Accelerate the Promotion and Application of New Energy Vehicles” (Cai Jian [2015] No. 159) is more attractive to bus operators.
Will operational subsidies continue?
In the documents jointly issued by the Ministry of Finance, the Ministry of Industry and Information Technology and the Ministry of Communications in 2015, the operating subsidies for new energy buses were clarified. From 2015 to 2019, the central government has purchased the provinces that have reached the goal of promoting new energy buses. The cards and models will be included in the “Recommended Model Catalogue for New Energy Vehicle Promotion and Application Projects” of the Ministry of Industry and Information Technology, and new energy buses and non-plug-in hybrid buses with an annual operating mileage of not less than 30,000 km (including 30,000 km), according to their actual conditions. The amount of promotion is given to the operation subsidy.
According to the timeliness of this document, there will be no operating subsidies by 2020, but this may not be the case. Previously, the trams disclosed that “new energy bus operation subsidies will continue and all operating vehicles can enjoy”. From the pre-draft documents issued by the Ministry of Finance, the possibility of operating subsidies continuing in 2020 has been greatly improved. .
Purchase subsidy may end early
In fact, in May this year, the Ministry of Finance issued the "Notice on Supporting the Promotion and Application of New Energy Buses". This document not only clarifies the transition period of the new energy bus subsidy, but also reveals an important information that the central government has already arranged. In the year of 2019 and the previous year, the fuel subsidy balance funds can be used for the new energy bus operation. Relevant departments will study and improve the subsidy policy for new energy bus operation. Starting from 2020, the company will focus on supporting the operation of new energy buses by means of “substitute awards”.
Although there is no mention of the change in subsidies for new energy buses in 2020, it is clear that it supports local governments to subsidize surplus fuel vehicles to support new energy vehicles. The central government will support new energy buses by means of awards and subsidies.
In the past, everyone has been paying attention to the purchase subsidy, which is the new energy vehicle subsidy policy issued every year. This fund is to be directly allocated to new energy vehicles. The operators that purchase new energy buses only need subsidies. The price to buy a vehicle. However, the operating subsidies are different. This part of the funds is allocated to the operating enterprises and is paid annually according to the corresponding standards. It is a concession that the operators of new energy buses can actually enjoy.
With the gradual decline of subsidy standards, the influence of subsidies on the price of car purchases is getting smaller and smaller. If the car subsidy is cut directly, the price of the vehicle will rise by a wave. This is obviously the bus operators are not willing to see. The situation is also not conducive to promoting the promotion and application of new energy buses.
If the two must be cut off, the impact of cutting the purchase subsidy is small. The Ministry of Finance issues operating subsidies ahead of time, allowing the operating subsidy funds to cover part of the unsubsidized purchase cost, especially in the competent authorities. It has been clarified that under the conditions of a more comprehensive new energy bus operation subsidy standard in the future, this may be a plan that everyone is willing to accept.
