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Beijing adjusts NEV subsidies

Shirley From Gasgoo| July 20 , 2018

China auto news, Beijing NEV subsidy policy adjustment

Shanghai (Gasgoo)- The Beijing Finance Bureau announced that Beijing will adjust the municipal subsidies of new energy vehicles (NEV), saying that both the central government and local subsidies will be no more than 60% of a NEV's price. In particular, local government will subsidize 50% of central government NEV subsidies.

Beijing's NEV subsidy policy targets customers, but the subsidies attributable to customers will be prepaid by NEV makers and sellers, which can apply for subsidies of no more than 60% of a car's price from central government and Beijing Municipal Government. According to the new policy, Beijing will provide NEV subsidies based on the ratio of 1:0.5 for central government and local subsidies.

China auto news, Beijing NEV subsidy policy adjustment

After the new NEV subsidy policy implemented, pure electric vehicles with range lower than 150km are ineligible for gaining subsidies. The subsidy for NEVs with range below 300km are less than before, while NEVs with range more than 300km can get more subsidies than before. Moreover, except for privately-owned new energy passenger vehicles, other types of vehicles are not eligible for subsidies until they clock up 20,000km.

It is said that Beijing subsidy policy for NEV promotion and application went into force from Jan. 1, 2018 and will be expired on Dec. 31, 2020. If the central government adjusts the relevant subsidy policies during the period, Beijing will also formulate its financial subsidy policies in accordance with central government policies. Temporarily, Beijing has popularized over 175,000-unit pure electric vehicles. As of early June, the number of NEV license plate application in Beijing has exceeded 280,000, which may be approved until 2024.

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