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China slashes eco-car subsidies 20% as sales rebound

New-energy-vehicle market expected to reach 1.8m units in 2021

An Infiniti electric concept car, the Qs Inspiration, at a shoot for a car advertisement in Shanghai.   © Reuters

BEIJING -- China is reducing subsidies for new-energy vehicles by 20% in 2021 following a solid recovery in sales, moving to pull back fiscal support designed for a pandemic-battered market.

The new policy for the program, covering electric cars, plug-in hybrids and fuel cell automobiles, took effect Friday. The subsidies are reduced by a smaller 10% for commercial vehicles including buses, taxis, ride-sharing vehicles and waste collection trucks.

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