China: the end of subsidies for the purchase of an electric car

General Motors Baojun E100 electric vehicles parked in the parking lot at the SAIC-GM-Wuling Automobile Co. auto plant in Liuzhou, China on May 23, 2018. Qilai Shen / Bloomberg via Getty Images

Text by: RFI Follow

1 min

 In China, the authorities are announcing a 30% drop in aid for the purchase of electric vehicles, with subsidies to be completely eliminated by the end of this year.

It must be said that the market is flourishing.

“Clean” cars are expected to represent more than 18% of total sales in 2022.

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With our correspondent in Beijing,

This gradual reduction in subsidies was announced in the spring of 2020, but some manufacturers intend to play the extensions.

Buyers who paid a deposit before December 31 will be able to benefit from the 2021 aid plan until March, said the Christmas advertisements, via discounts offered by brands.  

With a sales boom, more than 100% increase observed in recent months,

(

) as they are called in China are the new goose that lays the golden eggs of the

.

So much so, and this is a bet from the authorities, that the sector no longer needs a boost to reach the target of 20% of total sales achieved by these clean electric, hybrid and hydrogen cars at by 2025.

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Content of the development of the NEV industry, the subsidies will end on December 31, 2022, China's finance ministry said in a statement on Friday (December 31).

It is also a way of anticipating a partial and temporary production freeze this year, due to the shortage of global chips, necessary for the operation of these vehicles without gasoline.

►

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