China Set to Re-Introduce and Possibly Increase Plug-In Vehicle Subsidies
China has been pushing plug-in vehicles for some time now, but the result has been negligible. Sales have increased slightly, but are still way off track if China is to hit its government-proposed target of 5 million plug-in vehicles on its roads by 2020.
It’s no help for China that the nation’s extensive plug-in vehicle subsidies (up to $9,700 off in some instances) came to a screeching halt in December 2012. It was through this subsidy program that sales of plug-in vehicles rose in some of China’s most densely populated cities, but outlying or rural areas of the country never jumped on the electrified bandwagon.
It’s time for round 2.
China’s central government is now considering a new incentive program that could go above and beyond that of the now-expired subsidy plan. Details of this new incentive program are expected to be released later this month and could be approved and fully implemented shortly thereafter.
It’s believed that the new subsidy program will at least match the incentive amount of the expired initiative, but some reports suggest that incentives could soars to $14,000 per electric vehicle purchase.
That amount would match the subsidy plan that’s currently under discussion in Bejiing.
If approved at $14,000 and sales still lag, then we’re not sure what China’s next step will be. If an incentive of that amount fails, the perhaps plug-in vehicles will never catch on in China.