China's growth in demand for EVs likely to offset 30% cut to buyer subsidies

China’s growing appetite for electric vehicles (EVs) is likely to offset any negative impact arising from the 30% cut to buyer subsidies announced by the government on the last day of 2021, sources told Fastmarkets on Tuesday January 4.

China's Finance Ministry - along with the Ministry of Industry & Information Technology, Ministry of Science & Technology and the National Development & Reform Commission - announced the country's EV subsidy policy for 2022 on December 31, 2021, with a 30% year-on-year reduction.
Under the new policy for 2022, the subsidy for pure electric vehicles (PEVs) with a driving range of 300-400km will be lowered to 9,100 yuan ($2,013) per vehicle, from 13,000 yuan in 2021, while the subsidy for PEVs with a driving range of 400km or more will drop to 12,600 yuan per vehicle this year, down from 18,000 yuan last year.
Additionally, subsidies for plug-in hybrid vehicles will be lowered to 4,800 yuan per vehicle in 2022, from 6,800 yuan in 2020.

The Chinese government said that the subsidy policy will end on December 31, 2022, and electric vehicles licensed after that...

Published

Carrie Shi

Zihao Li

January 04, 2022

13:06 GMT

Beijing, Shanghai