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China decreases EV subsidy, increases minimum range to qualify

The Nikkei reported that China has lowered its subsidies for many electric cars and plug-in hybrids by about 30%. The changes to the program last through June 11. The government will re-examine the subsidies after assessing sales trends. Local governments also likely will lower their subsidies to manufacturers.

For an electric car with a range of 200-250 km per charge, the subsidy dropped to CNY 24,000 (US$3,787) from CNY 36,000 (US$5,681).

The minimum range to qualify for subsidies rose to 150 km (93 miles) per charge from 100 km (62 miles).

Between 2016 and early 2017, sales of new energy vehicles increased significantly; however, some businesses abused the program.

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