China to Extend EV Subsidy Program Beyond 2015
FEB 21 2014 BY ERIC LOVEDAY
China’s Finance Ministry has announced that it will extend it’s substantial EV subsidy program beyond 2015.
Initially, the program was set to fully expire at the end of 2015, but China has now promised to extend indefinitely.
Like here in the US, China had planned to slowly phase out the EV subsidies as more electric vehicles hit the roads. The idea was to begin the phase-out in 2015.
But with less EVs being purchase than anticipated, China has taken the necessary steps to extend the program until further notice.
Typically, China passes legislation on a yearly basis to extend the program, but this time China is looking several years into the future and already sees the need to extend the EV subsidy program.
The subsidies were initially put in place to assist China in hitting a target of 500,000 “new-energy vehicles” (BEV and PHEV) on its roads by 2015. That target will not be met, so a program extension is now in place.
China’s current subsidies are substantial:
- Up to 60,000 yuan ($9,900 US) for BEV purchases
- Up to 35,000 yuan ($5,775 US) for PHEV purchases
It’s believed that these subsidies will continue intact at least until 2017.