China Phasing Out Electric Vehicle Incentives; Will Instead Support EV Development and Research by Nation’s Major Automakers

4 years ago by Eric Loveday 6

 Roewe e50 Electric Vehicle

Roewe e50 Electric Vehicle

China’s Minister of Science and Technology, Wan Gang, rightly says that government incentives on electric vehicle purchases are “short-term solutions.”  We agree.

China Says We Shouldn't Subsidize This

China Says We Shouldn’t Subsidize This

But rather than stick with those “short-term solution” for the short term, Gang in pushing China to take an entirely different approach.

Gang wants purchase incentives out and support of research and development by China’s major automakers in.

Quoting Gang:

“The government is unwaveringly committed to the industry, but EV makers should never count on subsidies to survive.  It is imperative [for automakers] to enhance their core competence with research and innovation.”

As Gang believes, EV purchase incentives will disappear around the world by 2020, so rather than to focus on that, Gang says China should put its money elsewhere, like in the hands of automakers who are dedicated to bringing forth the latest and greatest EV technology.

It should be noted that Gang is one of China’s foremost experts on automobiles, especially the advanced technology type.

It’s still not known if China will follow Gang’s advice by ending purchase incentives, which expired in late 2012 and could possibly be renewed soon.  The expired program awarded EV buyers nearly $9,790 US.

China, though lagging behind other nations, does have some 39,800 electric vehicles on its road.  However, most of those are in the hands of private and government fleets.  The public in China has been slow on the uptake of electric vehicles.

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6 responses to "China Phasing Out Electric Vehicle Incentives; Will Instead Support EV Development and Research by Nation’s Major Automakers"

  1. Suprise Cat says:

    This is only about national subsidiaries, some cities like Shanghai have their own and independent program.

  2. alohart says:

    I hope that this “support of research and development” won’t be used to lower the prices of Chinese EV’s allowing them to be dumped on the world market at below cost as has been done by other Chinese industries.

    1. Brendan says:

      Alohart,

      You mean like the subsides that the US Govt, gave GM? We gave GM more money (to build the Volt, Spark etc…) than the Chinese government is planning to give all of the manufacturers combined over their entire program (4 billion USD total to all Chinese auto makers). We will be writing off at least 10 billion not including the tax breaks and incentives.

      NB we still give $7500 tax credit to every EV purchaser on the federal level through the IRS.

      1. Dennis says:

        Right on point. This leads to a completely false economy in the United States. The IRS published a report that showed that the mean salary of the tax return claiming the $7,500 tax credit showed a salary of $184,000. What a farce and fraud. The people who get the credit are the wealthy and not the average citizen. What we need is a conversion tax credit where the average person can convert his or her car and get a $7,500 tax reedit. That would reduce emissions much faster than the rich buying toys.

        1. Anthony says:

          You realize you can lease EVs and get the value of the $7500 tax credit, right? All those super cheap leases like $199 and $279 and whatever are subsidized by the tax credit. Those aren’t going to show up in any IRS statistics or studies.

          While you do need good credit, you don’t need a six-figure income.

  3. Anon says:

    I wonder if China will copy the Tesla SuperCharger concept (or battery swapping), to seed their EV industry / infrastructure, enticing its citizens into switching to electric?