Nikkei: China to slash EV subsidies 30% next year
26 December 2018
The Chinese government will reduce subsidies for EV purchases by about a third in 2019, according to a report in the Nikkei Asian Review.
China plans to completely end the subsidies in 2020 under a phaseout that began last year. This prediction is backed up by the Securities Times, published under the official People’s Daily.
“If subsidies for popular models are steeply reduced, sales could soften,” an executive at a major Chinese automaker said.
A compact electric model that travels 150 km (93 miles) on one charge receives a 15,000 yuan ($2,178) subsidy this year, down 60% from 2017 for this popular option. But midsize and large electrics with a 400 km (249 mile) range got a 10% boost to 50,000 yuan (US$7,262).
If the central government cuts subsidies, local governments will follow suit in their separately administered programs; the burden on consumers could sharply increase.
The new Government of Ontario/Canada will do the same in 2019 to support the local ICEVs manufacturers and Canadian Oil industries and to fight the new Federal Carbon Tax.
Posted by: HarveyD | 26 December 2018 at 02:19 PM
It may be too soon to phase out EV subsidies. They may be required to 2025 or until EV batteries price is reduced to $100/kWh and/or the average EV price has fallen to equivalent ICEVs price?
Subsidies for FCEVs should be maintained to at least 2030/2035 to allow more competition?
Posted by: HarveyD | 03 January 2019 at 08:15 AM