AUTONEWS

China's automotive authorities want to extend subsidy for electrified vehicles

According to many experts, China's electric vehicle market could not have become the largest in the world without the active support of the government, which has spent $14.8 billion since 2009 to subsidize buyers of private and commercial vehicles with electric motors. of traction. The subsidy program was supposed to end this year, but officials are considering extending it until the end of next year.

This is reported by Reuters, citing its own informed sources. In April this year, new vehicle sales in China dropped 48%, while sales of electric and hybrid vehicles rose 45% to 299,000 units. In March, sales of cars with new types of power plants more than doubled, so PRC officials want to offset the economic slowdown brought on by new lockdowns with new stimulus measures.

Initially, local authorities wanted to stop subsidizing the purchase of electric vehicles by Chinese citizens in 2020, but the pandemic has extended the program for a few years. It is worth noting that around 40% of the Chinese electric car market is now made up of cars costing around US$4,000, most of which are not subject to subsidies. But buyers of more expensive models can save a few thousand dollars per car.

At the same time, the amount of subsidies has decreased over the years and tax preferences for car buyers with new types of power plants will be reduced. If this year the authorities allow buyers to avoid paying taxes on the purchase of a vehicle, from next year a 5% tax will apply. Initially, the Chinese government wanted to introduce a tax at the rate of 10%, but in the current economic conditions, it was decided to proceed in stages.

AVnews