Climate Changed

China Raises Subsidies to Reward Longer Range Electric Cars

  • Minimum subsidy benchmark elevated to 150km from 100km
  • Subsidies increased for EVs with more than 400km range

A BYD E6 electric taxi

Photographer: Qilai Shen/Bloomberg
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China is increasing subsidies for electric vehicles that can travel longer distances on a single charge, while also making it more difficult for battery-powered automobiles to qualify for any new incentives under a central government plan.

The central government incentive for electric cars that have a range of 400 kilometers (249 miles) and beyond on a single charge has been raised to 50,000 yuan ($7,900) from 44,000 yuan, the finance ministry said in a statement dated Tuesday. At the same time, vehicles have to be able to go at least 150 kilometers on a single charge to be eligible for incentives, up from 100 kilometers previously.