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China to cut new energy vehicle subsidies by 30% in 2022

China to cut new energy vehicle subsidies by 30% in 2022
China to cut new energy vehicle subsidies by 30% in 2022   -   Copyright  Thomson Reuters 2021
By Reuters

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

The Ministry said on its website the 2022 NEV subsidies policy will terminate on December 31, 2022, and NEV will not be subsidised afterwards.

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

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

China, the world’s biggest auto market, has set a target forNEVs, including plug-in hybrids and hydrogen fuel cell vehicles,to make up 20% of auto sales by 2025.

Global automakers such as Volkswagen AG, GeneralMotors Co, Toyota Motor Corp and Tesla Inc are ramping up electric vehicle production in China.The Ministry also said China would tighten up supervision of NEV safety issues to prevent accidents.

Industry body China Association of Automobile Manufacturers estimated earlier this month that sales of NEVs in China would grow by 47% to 5 million this year.