China has announced it will cut subsidies for green energy vehicles such as electric cars by 30%, beginning January this year. A release from the Ministry of Finance said that the subsidies policy, NEV 2022 will be definitively closed by 31 December 2022.
The ministry had already anticipated that the NEV subsidies would be pruned between 2020 and 2022, by 10%, 20% and 30% respectively. However for public transport vehicles elimination of subsidies will be milder, 10% in 2021 and 20% in 2022.
The world’s largest automobile market, China established a goal for the green energy fuelled vehicles, hybrids, plug-in and with hydrogen cells: 25% of total auto sales by 2025.
The main global assembly companies such as Volkswagen, General Motors, Toyota and Telsa are concentrating their production of electric vehicles in China.
The ministry also announced that China will increase safety regulations and surveillance of NEV vehicles to impede accidents. The Automobile Manufacturers Association of China estimates that sales of NEV cars in China this year, should increase 47%, close to some five million units.