China takes several EVs off subvention list

The Chinese government has cancelled subventions for a row of electric and plug-in hybrid vehicle models. The Chinese ministry for industry has published an official list of models dropped from eligibility.

The list contains a total of 1,882 vehicle models from dozens of manufacturers, including many Chinese bus manufacturers, but also personal vehicle manufacturers, including BYD. A recently conducted investigation in cooperation with the state tax authority showed that these models are not in production yet, or have not been imported to China yet.

The cancellation of some of the tax subsidies is part of a long-term plan by the Chinese government to slowly phase out the subsidies for New Energy Vehicles by 2020. The subvention program, which brought about quick mobilisation from the auto industry, also led to wide-spread abuse of the subsidies. In 2016, 25 different auto manufacturers were under investigation for committing fraud with the EV subsidies.

Since then, China has been notably more wary of subsidizing wide swaths of the industry again. This is also visible in the new plan for the central subventions of EVs and PHEVs for the coming year. The subsidies are now tied more closely to battery capacity and energy efficiency. By 2018, EVs with less than a 150 km range will not be subsidized at all, for example, while vehicles with more than a 300 km range will be subsidized more heavily.

caixingglobal.com (paywall), miit.gov.cn (list in Chinese)