Compared with the 50% cut to subsidies in 2019
, future reductions in principle will be done so at a slower rate of 10% in 2020, 20% in 2021 and 30% in 2022.
This comes after Chinese Premier Li Keqiang announced in late March that the NEV purchase subsidy and purchase tax exemption policy would be extended by a further two years
, beyond the original expiry date of December 31, 2020.
Under the new policy, the subsidy for pure electric vehicles (PEVs) with a driving range of 300-400km will be lowered to 16,200 yuan ($2,289) per vehicle in 2020, from 18,000 yuan in 2019, while the subsidy for PEVs with a driving range of more than 400km will drop to 22,500 yuan per vehicle this year, from 25,000 yuan last year.
Subsidies for PEVs with a range below 300km will be phased out after a transitional...