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Five Chinese cities including Beijing renew NEV subsidies

Source: | Date: Nov. 25

  • The promotion of new-energy vehicles (NEVs) for the 12th Five-Year Plan period is about to come to a conclusion. For people in the NEV industry, how the central and local governments will proceed with their subsidy policies for the coming years will be their biggest concern.

  • According to a recent source, five Chinese provinces and cities - Beijing, Shenyang, Shanxi, Wuhan, and Haikou - have announced their NEV subsidy standards for 2016. Earlier this year, a number of Chinese governmental departments, including the Ministry of Finance (MOF), Ministry of Science and Technology (MOST), Ministry of Industry and Information Technology (MIIT), and National Development and Reform Commission (NDRC), released a guidance policy regarding NEV subsidies.

  • According to the policy, which will be valid from 2016 to 2020, the Chinese government will gradually cut down on its NEV subsidies over the next five years. The government will adjust its subsidy policies according to technological advancement, industrial development, promotion scale, and cost effectiveness, among others.

  • The government's subsidies cover a variety of NEVs, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCVs). The aforementioned five provinces and cities will provide their local subsidies that either match the central government's subsidies or draw close to them, starting in 2016.

  • In addition to these five provinces and cities that have renewed their subsidy policies, industry watchers are also paying attention to whether other cities will follow suit. For example, an insider recently revealed that Shanghai might cut down on its NEV subsidies going into next year, but he also said the city's policy that exempts NEVs from license plate registration fees is likely to continue.