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China 2018 NEV subsidy policy to undergo three adjustments

Auraro From Gasgoo| November 21 , 2017


2018 NEV subsidy policy China, A00-class vehicle, battery energy density NEV

Shanghai(Gasgoo)-Four relevant government departments recently had discussed the adjustments on 2018 NEV subsidy policies, which is expected to be issued in this week. The 2018 NEV subsidy policy will undergo three adjustments:

First, driving range levels of the subsidies will be further adjusted into five levels, indicating that subsidy amount granted for short driving range would be lower than before, while the subsidy amounts granted for long driving range would be higher than before. Rumor has it that a driving range gap of the passenger vehicles would be 50km.

Second, the criteria of battery energy density for logistic vehicles and coaches would be higher, adjusting from 90Wh/kg to 115Wh/kg and from 120Wh/kg to 140Wh/kg respectively. Moreover, the subsidy levels according to energy density would be also adjusted into three levels.

Third, subsidies will be granted to different NEVs according to the levels of electric power consumption, and the power consumption of pure electric vehicles should decrease 10% compared with the power consumption of pure electric vehicle according to the policy in 2017.

In addition, the A00-class vehicle would be prior model for the phasing out of NEV subsidies, which may depress the A00-class vehicle market in the future.

According to an auto industry insider, with the phasing out of NEV subsidies, it's a trend that many NEV companies would face mergers and acquisition. Three key abilities would survive the companies through the forthcoming mergers and acquisition, namely the core technologies, saleable products and financing abilities. 

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