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Alternative energy vehicle companies cheated subsidies for a total of RMB 1.67b, and half companies sold less than 500 units in half year

Biwen Wang From 盖世汽车| June 26 , 2017

CATLState Auditing Administration Alternative energy vehicleJingjin ElectricState Auditing Administration Alternative energy vehicle, CATL,Jingjin Electric

Recently, the State Auditing Administration released an audit report on the 2016 central budget implementation and other financial data, revealing some problems in the popularization process of alternative energy vehicles, including the higher standards for subsidies, and unused vehicles and charging posts.

Reporters observed that the higher standards for subsidies have been existing for a long time. For example, for the 6,801 units alternative energy vehicles from 13 companies in an inspection, there are 3,511 units’ electric buses enjoying subsidies higher than 70% of unit sales prices.

Besides, inspection also shows that for the 35,500 units’ alternative energy vehicles bought by 16 companies, there are 2,200 units’ being unused for at least one year, and 17,200 units’ riding for less than 3,000 KM per year. Thirty companies from the sixty-six inspected companies sold less than 500 units per year.

The report points out that some auto companies obtain financial subsidies of RMB 1.67b in cheated ways, accounting for half of eight provincial funds from 2015 to 2016.

But the domestic alternative energy market also shows great growth in recently years, with global-known brands including BYD, Geely and BAIC ranking top 10 across the world in terms of passenger vehicle sales volume. CATL and Jingjin Electric all become world-known part providers.

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