Subsidies for E-Cars Continue

In order to halt the decline in sales of electrified cars, China wants to continue the state subsidies for the time being.

In fact, the subsidies for "New Energy Vehicles" (all-electric cars and plug-in hybrids) should expire at the end of this year. They were already cut in half in June. As a result, sales of these cars have fallen by 4 percent to 1.2 million units in 2019, the first annual slump that manufacturers in China have suffered so far. The Chinese government is actually planning to sell 2 million "New Energy Vehicles" this year. Therefore they are keeping the subsidies running for the time being, but have not announced over what period, according to the Nikkei Asian Review.

China had introduced the subsidies for the sale of "New Energy Vehicles" in 2010. By 2018, the number of vehicles sold in China had risen to 1.25 million cars, which represented around 60 percent of global demand.