China Incentives Increase With Range Of All-Electric Cars
China is adjusting its New Energy Vehicle subsidies policy to better lead to the results that are anticipated to be achieved.
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.