Technology
China Cuts Electric-Car Subsidies, Shares of Top EV Makers Drop
- Highest-level subsidy for new-energy vehicles reduced by half
- Local governments urged to remove subsidies after grace period
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China said it’s scaling back subsidies on electric vehicles to encourage local manufacturers to rely on innovation rather than government assistance as the industry matures and costs fall. The cuts were deeper than expected and shares of the country’s top EV makers slid.
The subsidy for pure battery electric cars with driving ranges of 400 kilometers (250 miles) and above will be cut by half, to 25,000 yuan ($3,700) per vehicle from 50,000 yuan, the Ministry of Finance said in a statement Tuesday. To qualify for any subsidy, electric cars need to have a range of at least 250 kilometers, compared with 150 kilometers previously, the ministry said.