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.