China to Cut Subsidies for Non-Electric Vehicles, Caixin ReportsBonnie Cao
China’s Ministry of Finance will reduce subsidies for “traditional” vehicles as part of government efforts to boost development and sales of renewable-energy cars, Caixin reported.
The government will also “improve” fuel-subsidy policy for buses this year, Caixin said on its website on Jan. 13, citing Zeng Xiaoan, head of the ministry’s economic development department, who spoke at an electric-car forum.
The change will also build on efforts by China, the world’s biggest carbon emitter, to fight pollution and cultivate the local electric-vehicle industry, which includes BYD Co., which makes electric and hybrid cars and buses.
The nation will accelerate building EV charging facilities, Caixin said. Chinese consumers have been reluctant to switch to EVs because of reliability concerns and a lack of charging infrastructure.
BYD has said it plans to start selling vehicles in the U.S. this year.