CHINA’S GOVERNMENT RELEASES NEW SUBSIDY POLICY OF ALTERNATIVE ENERGY VEHICLES OF 2016
China’s Finance Ministry has released the new subsidy policy of alternative energy vehicles that will be implemented from 2016 to 2020. According to the new policy, the subsidy of passenger vehicles will be issued based on the range (R) of electric vehicles, which is as follows:
Electric vehicles with a range from 100 kilometers to about 150 kilometers can receive 25,000 yuan. Electric vehicles with a range from 150 kilometers to about 250 kilometers receive 45,000 yuan subsidy while vehicles with a range of 250 kilometers or more get 55,000 yuan.
Plug-in hybrid vehicles (including that of extended range) with a range of 50 kilometers or more can receive 30,000 yuan.
Compared with that implemented from 2013 to 2015, the new subsidy policy raises the minimum range of electric vehicles from 80 kilometers to 100 kilometers and reduces the subsidy at all level by 5,000 yuan. The subsidy of plug-in hybrid vehicles will also be reduced by 5,000 yuan.
Electric and plug-in hybrid buses, electric and plug-in hybrid trucks, and other electric and plug-in hybrid vehicles for special purpose (including that of extended range) are all covered by the same subsidy policy.
The subsidy of passenger vehicles, except for fuel-cell vehicles, will be reduced to some extents from 2017 to 2020. Compared with that issued in 2016, the subsidy issued from 2017 to 2018 will decreased by 20%, and the subsidy for 2019 to 2020 will lowered by 40%.