Across The Border | Renewed policy incentives to keep Chinese EV carmakers afloat
Chinese electric vehicle producers will continue to benefit from Beijing’s new-energy vehicle push, analysts said, even as the business environment becomes increasingly competitive
Chinese electric vehicle (EV) producers should continue to benefit from Beijing’s new-energy vehicle push, analysts said, even as the business environment becomes increasingly competitive.
China became the world’s largest EV market last year with 336,000 units sold, a 63 per cent jump from the year before. The boom, started three years ago, was largely thanks to generous government subsidies.
But favourable policies toward electric cars will shift from consumers to manufacturers, as monetary incentives had the unintended consequence of distorting the market, prompting carmakers to falsify sales numbers to obtain subsidies.
Beijing reduced subsidies by 20 per cent this year, and will gradually phase out all subsidies by 2020.
Previously, buyers of the longest-range EVs could receive subsidies up to 110,000 yuan (US$16,703) per unit from central and local governments.
