China to reduce subsidies for new energy vehicles by 30% by 2022

China will cut its subsidies New energy vehicles (NEVs), such as electric cars, by 30% next year, the Finance Ministry said on Friday.

In a notice posted on its website, the ministry said that the NEV 2022 subsidy policy will end on December 31, 2022 and that NEVs will not be subsidized thereafter.

The ministry had said in April 2020 that subsidies for NEV would be reduced from 2020 to 2022 by 10%, 20% and 30%, respectively.

For NEVs in public transport, subsidies would be reduced by 10% in 2021 and 20% in 2022.

China, the world’s largest auto market, has set a target for NEVs, including electric hybrids and hydrogen fuel cell vehicles, to account for 20% of car sales by 2025.

Global automakers such as Volkswagen AG, General Motors Co, Toyota Motor Corp and Tesla Inc are increasing their production of electric vehicles in China.

The ministry also said China would strengthen monitoring of NEV safety issues to prevent accidents.

The China Automobile Manufacturers Association estimated earlier this month that new electric vehicle sales in China would grow 47% to 5 million this year.

Leave a Comment