AUTONEWS

China reduces subsidy for automotive electrification

The Chinese have not started this incursion into electric vehicles because they find the solution the most, or because they dominate technology like nobody else. What is now the paradise of electric cars the battery was at the expense of many subsidies, because it was necessary to improve the air quality in large cities, where even harder to see the car ahead, the more the traffic lights.
Faced with limitations on the sale of vehicles with gasoline or diesel engines coupled with strong incentives to electric models, customers responded by giving preference to battery-powered cars, often the only ones they could buy. But now that prices are falling, as a result of competition, increased production and reduced cost of batteries, the government thought it was time to start saving.
According to Bloomberg, electric vehicles with a range of 400 km will see the 50,000 yuan (6,600 euros), which until now received aid, reduced by half.
In a phase where sales of electric cars continue to rise, despite the fact that total sales are dropping considerably, local officials also decided to withdraw all support for models that announce an autonomy of less than 400 km, forcing manufacturers, even those vehicles, to opt for larger capacity batteries.This decision will certainly cause some strangeness to Chinese drivers, accustomed to buying affordable electric models, but only because the batteries that equipped them were as small as cheap. Therefore, limited to autonomies that rarely exceeded 200 km. Doubling this autonomy to reach the new 400 km mark, and thus get the incentives, will force the industry to some technological effort. And buyers too, only financial.