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Subsidies on commercial vehicles reduced as high as 40%

Biwen Wang From Gasgoo| December 08,2017

NEV new energy buses

Shanghai (Gasgoo)-The newly exposed 2018 NEV subsidy plan reveals that new energy buses still face the largest adjustments. Compared with the subsidy policy in 2017, the 2018 policy has added the appraisal on unit load capacity consumption and lifted requirements on energy density of power battery system and fuel saving level. In comparison with 2016 and 2017, the 2018 subsidy would phase out 60% and 40% respectively.

The new subsidy plan puts stricter requirements on unit load capacity consumption (Ekg). NEV models with energy consumption of no higher than 0.21 Wh/km.kg will have access to apply subsidies in 2018, compared with the number of 0.24 in 2017. Besides, NEV models with energy consumption between 0.15 and 0.2 Wh/km.kg will have complete subsidies.

In the meantime, the new plan shows emphases on some models instead of the inclusive developments. For example, pure electric passenger vehicles models with range of less than 300km face subsidy base decline ranging from RMB 4,000 to 20,000. However, models with range of over 300km show subsidy base growth, while models with range less than 150km face no subsidies.

Commercial vehicles face direct and obvious subsidy declines. Buses will suffer 40% decline, being cutting from the highest number of RMB 450,000 to RMB 270,000 and the maximum subsidy number for special vehicles also decline more than RMB 75,000.

Influenced by the declining subsidies, lithium cell and new energy bus stock prices both suffered declines recently. Some industry insiders believe that the national financial subsidies only play an assistant part and NEV industry development will be mainly driven by the market and double-credit policy in the future.


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