China Places Caps On Plug-In Electric Car Subsidies, Raises Incentives For Fast Charging Vehicles


The BYD 12-meter eBus

The BYD 12-meter eBus

Several months ago, news broke of a massive subsidy scandal in China. The gist of the scandal is that some 25 automakers reported plug-in vehicle sales higher than actual amounts in order to secure additional government money from the subsidy program. China reacted swiftly by banning some automaker from producing vehicles and fining others.



Now, China is attempting to fix the somewhat broken system.

Effective on January 1, 2017, subsidies rates were reduced and additional requirements were put in place.

As Reuters reports on the highlights of the changes:

  • Reduces subsidy rates from Jan. 1
  • Bus makers targeted after subsidy scandal
  • Halves maximum award for buses to $43,000
  • Gives incentives for fast-charging vehicles

The biggest offenders in the scandal were bus makers, so China in particular is cracking down there by┬áincluding “a new formula for calculating central government subsidies and subsidy caps for electric and plug-in hybrid coach buses, with a maximum subsidy of 300,000 yuan ($43,000) per vehicle, roughly half of the previously listed highest subsidy of 600,000 yuan,” reports Reuters.

China Zhongwang and Brilliance Bus Join Hands to Successfully Develop All-Aluminium New Energy Public Buses

China Zhongwang and Brilliance Bus Join Hands to Successfully Develop All-Aluminium New Energy Public Buses

Local government subsidies will be capped too at 50% of the award amount put forth by the central government of Chinba.

Some additional notes of interest (per Reuters)

  • The latest policy introduces a new system for calculating coach bus subsidies based on the energy density, charging speed and, for plug-in hybrids, fuel efficiency.
  • Unlike the previous policy, fast-charging coach buses will receive roughly two-thirds more in subsidies than those that charge at normal speeds.
  • For passenger cars, the policy delivered on earlier promises to roll back subsidies for electric and plug-in hybrids starting with a 20 percent reduction in 2017.

Sales of plug-in have never been higher in China, but these changes may negatively impact sales. However, China has other ways of promoting the purchase of electric vehicles, so the impact of reduced subsidies will likely be negligible.

Source: Reuters

Categories: China

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13 Comments on "China Places Caps On Plug-In Electric Car Subsidies, Raises Incentives For Fast Charging Vehicles"

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They should do that here. If your battery can charge at 350Kw for first 15 min, then you get twice the subsidy amount.

Many people do not have the option to charge at home, so the whole industry can expand faster by adopting this measure.

Support local electrical companies, support local jobs. MAGA!

Here? In the internet?

And btw., they *are* supporting local electrical companies and local jobs. Just not local from *your* point of view.

There is no place for nationalism in climate preservation.

Of course there is!

Unless you prefer the continuation of sending hundreds of billions to the Middle East.

9 of the Largest Oil Companies on the Planet, made over $200 Billion each during 2015. The Middle East just gets a slice of the The Big Oil Pie. Notice how OPEC is not able to keep production down, and prices up? There are other producers undercutting their market share and business model.

That does change the point, that America is awash in foreign oil, which contributes greatly the the trade deficit, and reduces local employment in the electrical generation industry.

You meant “doesn’t change the point” probably!

Yup, thanks.

Locally sourced electrons are King for neighborhood jobs, but trade deficits, linked to petroleum imports, are going to be with us, for a while longer. Automotive transportation going to EV propulsion, needs to harness renewable energy, in order for it to start to make a dent in foriegn trade imbalances.

Well, I think I can see where this is going… The President is clearly going to jump onto the electric vehicle thing in a big way (hence Mr Musk being at his ‘power talks’ recently) powered (indirectly, obviously) by US coal. No need for foreign oil – and therefore no need to spend 100s of billions annually securing it and making 1000’s of jobs in both areas in the process – win, win, win, winny-win-win – climate-change (what climate-change?), lose.

Of course, he could do exactly the same with renewables – especially PV – but it looks like he has too many chums in Big Oil for that to happen.

Those damned canadians, stealing your money and jobs. ­čśŤ
Time to start a war against them? I have heard that is the best way to handle any problem.

By the way, where do you think you get your oil from and how large percentage coming from which foreign countries?

Funny, cause I’m Canadian.

The Canadians are cool headed energy exporters. Don’t mind our incitefull Yankee saber rattling! As you can see recently, down here we’re undergoing some technical difficulties, as to the recent flipping of the Power Switch!

damn, I thought the US was pretty bad/corrupt…

South Korea too with their govt scandal going on.

Looks like we’re “Normal”……blahahahaha!!!