Modified electric car subsidies in China, that now support models with longer-range, comes into force.
The government now requires at least 150 km (93 miles) of range for BEVs to get any discount (previously the cut off was 100 km). China also increased the subsidies for the longest-range models.
Citi bank analyzed the changes and sees it as a positive. There will be big growth in the battery market as the packs become larger. It's also expected that this year, some 1.15 million New Energy Cars will be sold in China.
"The new subsidies are more than enough to cover the battery cost for a typical 300-km EV. This should be very beneficial to battery demand due to bigger batteries being installed in EVs."
The amount of subsidies is enough to cover a significant part of the associated battery costs.
Incentives for all-electric cars depending on range:
- 150-200 km: 15,000 yuan (≈$2,330)
- 200-250 km: 24,000 yuan (≈$3,730)
- 250-300 km: 34,000 yuan (≈$5,280)
- 300-400 km: 45,000 yuan (≈$6,990)
- over 400 km: 50,000 yuan (≈$7,770)