ANNOUNCEMENT 26 Mar 2019
March 26th, 2019 - The Chinese government announced a change to its subsidy policy for electric vehicles.
NUMBER OF INTERVENTIONS
PRC Ministry of Commerce, March 26th, 2019. (财建〔2019〕138号 关于进一步完善新能源汽车推广应用财政补贴政策的通知)
On March 26th, 2019, the Chinese government announced it would be tightening the criteria that electric vehicles (EV) manufacturers' products must satisfy in order to qualify for subsidies.
In terms of industry impact, the biggest changes are the halving of subsidies for battery-only EVs with a range of 400km or more, from USD 7,450 to 3,730 (CNY 50,000 to 25,000) per vehicle.
A minimum range of 250km is required for such cars to qualify for any subsidy.
Other, more technical changes were also included in the announcement, please see the original document for more details.
The move was intended to urge Chinese EV manufacturers to improve the standard of technology of their products.
The change came into effect upon its promulgation.
It should be noted that, unlike previous announcements, the March 2019 announcement did not mention any changes for subsidy policies for fuel cell vehicles. This is due to the dearth in both purchasing of such vehicles, and supportive infrastructure for them (i.e. refueling stations).