China Renews $9,800 Electric Vehicle Subsidies
We foreshadowed this occurrence a few weeks ago, but now it’s official.
China has decided to renew its electric vehicle subsidy program for three years.
The original program had expired last December and renewing it never came to a vote.
Now, the decision has been made to renew the 60,000 yuan ($9,800) EV incentive program through the end of 2016.
Excluded from China’s incentive program this time are conventional hybrids. These archaic vehicles, which lag the modern-day plug, are no longer seen as clean enough.
As it probably should be, only plug-in vehicles now qualify for the substantial incentive in China.
Electric buses qualify for up to 500,000 yuan ($81,680 US) and those pesky fuel-cell vehicles (which don’t really exist at the moment in the country) somehow made their way into China’s program and will qualify for up to 500,000, too. We’d be willing to bet none of the fuel-cell incentives will be given out though, as you’d have to be able to purchase a qualify vehicle first.
According to recent statistics, China is home to over 27,800 plug-in vehicles. The renewal of this incentive program is sure to help grow that figure.
Source: Bloomberg BusinessWeek