China Incentives Increase With Range Of All-Electric Cars

MAR 3 2018 BY MARK KANE 14

Sales of New Energy Vehicles in China – December 2017

China is adjusting its New Energy Vehicle subsidies policy to better lead to the results that are anticipated to be achieved.

Sales of New Energy Vehicles in China – December 2017

The direction is to have more energy dense batteries, more long-range electric cars and to lower the incentives for short-range electric cars and buses.

To qualify for the subsidies, electric cars are required to have 150 km (93 miles) of range, instead of just 100 km (62 miles). Additionally, batteries need to be more energy dense (105 Wh/kg instead 90 Wh/kg).

Cars with less than 300 km (186 miles) of range will get lower incentives, while those that can achieve 400 km( 248 miles) will get more incentives (50,000 yuan or nearly $7,900 instead 44,000 yuan, which translates to +13.6% or +$950).

BYD shares went up 5.5% as the company promises more 400 km BEV this year.

Changes also influences electric buses that soon will be needed to compete with conventional ones at subsidies reduced by half.

Source: Chinese government via Bloomberg

Categories: China


Leave a Reply

14 Comments on "China Incentives Increase With Range Of All-Electric Cars"

newest oldest most voted

Sounds like to me that they are pushing their companies not to just meet local needs but to produce cars that will sell well on the international market.

300-400 KM is the range most people want to see in an electric car, and even more range is better.

In many cases they don’t need it, but too many buyers are like my mother who would panic if the fuel gauge fell to the tank being half full! I kid you not, at that point the car still had a range of over 200 kilometers yet my mother would loudly insist on going to a gas station to fill up.

Lord Kelvin salutes you for including him in your comment.

Lord Kelvin? Where?

Just in front of Mega.

Increasing the range needed to get subsides sounds like a good idea, but I don’t know why they think they need to specify specific energy. That is something I think is best left for the market to decide.

Because they want better chemistries to be used so that they gain momentum for the global market.

“let the market decide” = giving up, it’s the most inefficient method if you want improvement.

The market can take into account things that were never thought of, like cycle and calendar life. Governments never get them balanced right.

-1 forthe “never” and for the implication that “the market” would get it right.

It wasn’t “the market” that brought us safer and more efficient LICE cars, but Govt passing regulations while industry moaned and tore their hair out crying about the end of market freedom.
Just listen to the LICE industry cry about CAFE standards and ZEV Mandates now as they drag their feet to get into EVs.


They should at least shoot for 150 wh/kg, that’s easy to get these days. Phev packs are 100 wh/kg now. By 2020 there should be several packs in the 175-200wh/kg range with market leaders 200+.

You have to love that curve. In 3 years it went up 10 times. That means in 2020 will be doing 8 million a year and 2023 80 million a year. Right on schedule to ICE decimation. Tony Seba rocks. I don’t want the petrol clowns bailed out. We already had too many stupid wars and financial collapses bailing them out, they were paid of long long ago. they need to be made to eat this time, its the cost of putting everyone’s life at risk for their gluttony.


Hear here!