AUTONEWS

Chinese authorities cut subsidies for electric and hybrid cars

In recent years, demand for electric and hybrid vehicles in China has been supported by government subsidies, but from next year authorities hope to phase them out altogether. The first month of this year brought news to Chinese buyers about the reduction of targeted subsidies, and therefore, the sales volume of related vehicles decreased by 18.6% sequentially.

Similar statistics are shared by Reuters, citing data from the China Association of Automobile Manufacturers (CAAM). The sample included not only battery electric vehicles, but also hybrids. In total, about 431,000 units of these vehicles were sold in China in January, up from 518,000 the previous month. The drop of 18.6% in the consecutive comparison, however, does not cancel out the increase in sales volumes of 135.8% compared to January last year. However, in December, the annual increase was measured at 159.5% as many buyers were aware of the upcoming subsidy reduction and therefore were in a hurry to buy a car before the end of the year.

Since January, Chinese authorities have cut the subsidy for more or less electrified cars by 30%. In a year, subsidies will cease altogether, which will be a test of strength for many participants in the local electric vehicle market. The top ten Chinese market leaders include just one foreign company represented by Tesla, which sold 59,845 locally assembled electric vehicles here in January.

China remains the biggest automotive market, with 2.53 million vehicles sold here in January, up 0.9% from the same month last year. On the other hand, it is evident that electric and hybrid vehicles do not occupy more than 17% of the local market. That doesn't stop China from continuing to be the biggest market for electric vehicles. It is the presence of an impressive base of loyal consumers that allows Chinese companies to rapidly expand the range of their electric vehicles, competing in all seriousness with Tesla due to a more attentive attitude to the needs of the target audience.

AVnews / Mundoquatrorodas