GAC-Toyota Ranz Concept

GAC-Toyota Ranz Concept

High incentives for buying electric cars in China (up to 60,000 yuan or $9,670) launched sales to a new level - 5-times up compared to 2013.

However, sales of roughly 56,700 vehicles in 11 months is far behind the goal of putting 5 million new energy vehicles on the roads by 2020, so the government knows that it must hold subsidies for at east few years if it wants buyers to opt for zero-emissions vehicles.

And this is the latest plan. If the new draft is accepted, subsidies will stay until 2020, but from 2016 on, the amount of the subsidy will gradually be scaled down.  The extended program caps at 55,000 yuan ($8,860 USD).

Incentives are targeted for all-electric, plug-in hybrid and fuel cell vehicles that are locally manufactured (no support for Tesla Model S, BMW i3 or electric smart, etc.).

Source: Reuters