February 15, 2018 4:08 am JST

China cuts subsidies for many electric cars, lifts standards

Automakers face higher range requirements as fraud prompts aid reduction

YU NAKAMURA, Nikkei staff writer

China is reassessing subsidies for manufacturers of electric vehicles and plug-in hybrids.

GUANGZHOU -- China lowered manufacturer subsidies for many electric cars and plug-in hybrids by about 30%, with the central government planning to re-evaluate this aid again around midyear.

The revamped subsidy program that took effect Monday grants automakers 24,000 yuan ($3,780) for each electric car with the typical range of 200km to 250km per charge, down from 36,000 yuan.

The minimum range to qualify for subsidies rose to 150km per charge from 100km.

Many businesses abused the subsidy program and collected aid fraudulently between 2016 and early 2017. Sales of new energy vehicles increased drastically during the period.

The changes to the program last through June 11. The government will re-examine the subsidies after assessing sales trends. Local governments also likely will lower their subsidies to manufacturers.

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