China to Subsidize EV Purchases by Up to $17,000 Per Vehicle




It’s being reported that China is almost set to finalize its green-energy subsidy program for 2014.



According to TechWeb, much of the focus centers around Beijing and its annual allotment of license plates.  Due to massive congestion and smog within Beijing, the city awards (by lottery) only 40,000 new vehicle registrations per year.  Beijing has decided to set aside fully 20,000 of those for pure electric vehicles, but only 10,000 for consumers (the remaining 10,000 goes to the commercial/fleet industry, we presume).

Of course, this will drive up EV sales, as some residents of Beijing will see buying EVs as the only way to get on the road this year.

Additionally, Beijing has reportedly set its purchase incentives for EVs at ~$17,000 per vehicle.  It’s worth pointing out that China has never extended these subsidies to include EVs built outside of Chinese borders.  The guidelines for 2014 follow this practice of limiting subsidies to only domestically built EVs.

Source: TechWeb

Categories: General


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26 Comments on "China to Subsidize EV Purchases by Up to $17,000 Per Vehicle"

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That level of subsidy, but only to domestically produced EVs, is going to do exactly what it is intended to do.

It will accelerate plans to produce EV cars within China.

A Tesla produced there with that subsidy would be, if not cheap. at least much more affordable.
A Leaf would be at a fantastic price.

Mind you, the new BYD car, the Qin, looks to be a good competitor even on a level playing field, although we don’t have enough information to be sure.

Well, since the Leaf is already produced there it’s numbers will be even greater for 2014. If slapping on a chinese car makers brand instead of Nissans counts as being built inside the borders that is…..

That didn’t count, but in april(?) this year you can order an Leaf truly built inside the borders…
Nissan the undisputed king of EVs (until Tesla put them in their place?).

Thanks for the info.
I have not been following that.

I think SAAB has a Chinese domestic EV they are getting ready to release also. Many others too. I would not be surprised if Chinese consumers had more EV’s and better EV’s to choose from within a few years than even the US or EU markets.

“Of course, this will drive up EV sales, as some residents of Beijing will see buying EVs as the only way to get on the road this year.”
And/or it will boost Kandi rentals

“It’s worth pointing out that China has never extended this subsided to include EVs built outside of Chinese borders. The guidelines for 2014 follow this practice of limiting subsidies to only domestically built EVs.”
I wonder if car companies could get around this by selling almost assembled cars to China, let them do the final last bit, then call it “Made In China”.

I’d guess Tesla and others are in discussion with the Chinese authorities right now to try to sort out what they have to do to qualify.

How can they get away with such blatantly discriminatory policies? They flood our market with their goods yet we can’t get their subsidy for our cars?

Why doesn’t Europe and the USA ever crack down on China outside of the occasional random action.

And the US has never, at any time, instituted discriminatory practices?
You want to take a look at their play book!


That is because when the United States writes trade agreements, we’ve long done so in order to gain non-trade related terms in our agreements. We sell our domestic businesses short, in order to buy purely diplomatic concessions from our trade partners.

That means we have agreed to one-sided agreements where the other side can discriminate against US products, while at the same time the US cannot discriminate against our trade partner’s products.

In United States one sided free trade policy is driven by ideology, not economic realities. On the other hand China is driving growth oriented economic policy with good understanding that economic growth is possible only via domestic production. Good although rather dull and overly political book to read is Donald Barlett’s ‘The Betrayal of the American Dream’.

The benefits that EV’s will have on air quality will depend entirely on how well China replaces coal with renewables, just as here in the US. Let’s get some feedback on how well that part is going as more EV’s appear on Chinese and US roads.

I don’t think it’s so much the coal plants that are causing the bad air as it is all the exhaust pipes. But correct me if i’m wrong.

Both are very bad.
For China as a whole it seems that coal emissions may cause the most harm:

‘Emissions from coal plants in China were responsible for a quarter of a million premature deaths in 2011 and are damaging the health of hundreds of thousands of Chinese children, according to a new study.’

However for some cities, including Beijing:

‘Coal and cars are the two main sources of air pollution in Beijing, according to the city environmental protection bureau. Coal accounts for 16.7% of all air pollution, and vehicles for 22%. In winter months, the percentage ascribed to coal increases, as more is burned for heating.’

In the long run China can replace coal with sunpower. In 2013 China puts 12 GW Solar power which is more than USA has done in all the years. This year target is 14-15 GW which ultimately will reduce a little bit of coal dependency.

Currently they are expanding coal massively, and also hydro as much as possible.

For all the hype solar is a minor component, with wind being more important.

I am hopeful that they will do the same as France did in the 70’s in and in the 20’s really go for it with nuclear, as France basically in a decade changed to around 75% nuclear for electricity generation.

All the enormous so-called ‘back-up’ from fossil fuels for renewables which in practise comprise most power generation could be avoided, along with the massive toll from air pollution.

Nuclear dangerous?
Zero casualties from Fukushima, hundreds of thousands a year from coal pollution in the air in China, no exceptional circumstances or tidal waves needed.

You don’t know and won’t know for decades what the affects of Fukushima will be on the lives of the japanese people. You cannot say that there are zero fatalities. You might say there were no immediate fatalities if you want to spin it positive.

I go by expert opinion.
For instance the WHO reports.

What is clear is that the tidal wave killed many thousands.
That is what you call a disaster.
With none confirmed dead it would not suit the media’s play book to call Fukushima a major expensive inconvenience, so it got labelled as a disaster.

What has had confirmed fatalities was panicking and evacuating people.

I have a nuclear reactor around 15 miles from where I live, and if a tsunami or such hit that I would go nowhere, but stay indoors and shut the windows.

China is building(and planning) hundreds of nuclear reactors too along with coal and hydro, and I think it is the right decision. They are not kidding themselves like what Germany is doing…..

The exhaust pipes are not great but the coal is the bigger problem. And not only do they generate most of their electricity with coal, they do a lot of home/office heating with coal. They are living in the 1920’s.

yes, there are still a lot of home cooking ovens and heating systems that still use coal in China. And because they don’t have tall stacks releasing the soot high in the air, they are more harmful than even their coal powered electricity plants.

It is like having a car engine running inside your house, using it to cook and heat your home, compared to having it run on the street driving by your house.

Unfortunately it leaves lower-to-working class Chinese with the attitude that coal fired electric plants can’t be that bad, because they have their own coal fired stuff in their own homes and businesses.

China should go back to the 70s as the bike capital of the world.

Leptoquark, Electric vehicles makes it easier to integrate renewable energy into grid as EVs can be charged using mostly off-peak electricity.

Therefore although Chinese coal power is dirtier than modern gasoline engine, this could change very soon. Especially Chinese middle class can install solar panels on their roof and use solar power for charging EV.

Anyone know what the incentives are for PHEV in China?
A quick google did not yield results.

Getting home to see the folks at Chinese new year is bigger in China than Thanksgiving is in the US, and a lot of people may be reluctant to buy a BEV for that reason.


On June 1, 2010, the Chinese government announced a trial program to provide incentives up to 60,000 yuan (~US$9,281 in June 2011) for private purchase of new battery electric vehicles and 50,000 yuan (~US$7,634 in June 2011) for plug-in hybrids in five cities.[10][11] The cities participating in the pilot program are Shanghai, Shenzhen, Hangzhou, Hefei and Changchun. The subsidies are paid directly to automakers rather than consumers, but the government expects that vehicle prices will be reduced accordingly. The amount of the subsidy will be reduced once 50,000 units are sold.[10][11]
In addition to the subsidy, the Chinese government is planning to introduce, beginning on January 1, 2012, an exemption from annual taxes for pure electric, fuel-cell, and plug-in hybrid vehicles. Hybrid vehicles will be eligible for a 50% reduction only.[12]
A mid-September joint announcement in 2013 by the National Development and Reform Commission and finance, science, and industry ministries confirmed that the central government will provide a maximum of US$9,800 toward the purchase of an all-electric passenger vehicle and up to US$81,600 for an electric bus. The subsidies are part of the government’s efforts to address China’s problematic air pollution.[13]