Skip to content
Subscriber Only

China Said to Consider Cutting Subsidies for Electric Buses

  • Incentives for electric buses said to be cut as much as 49.5%
  • Plan is being reviewed by ministries and subject to change
Updated on

China is proposing to cut the amount of subsidies for electric buses because the policy was considered overly generous, while imposing a price ceiling on passenger vehicles that qualify for incentives, according to people familiar with the matter.

Incentives for electric buses will be cut by an average of 32 percent, with funding for the largest models reduced by as much as 49.5 percent, according to the people, who asked not to be identified as the deliberations are private. Electric passenger vehicles costing more than 350,000 yuan ($53,800) won’t be eligible for government subsidies under the proposal. The plan is still being reviewed by various ministries and has to be approved by the State Council, or cabinet, the people said.