China, the world’s largest car market, cuts subsidies for new electric and hybrid cars by 30%

China, the world’s largest car market, will cut subsidies for new electric and hybrid cars by 30 percent next year, Beijing’s finance ministry said on Friday.

The policy for granting subsidies to electric and hybrid cars will end on December 31, 2022, and after that date this type of vehicle will no longer be subsidized.

In April 2020, the Ministry of Finance announced that subsidies for new electric and hybrid cars will be reduced by 10% in 2020, 20% in 2021 and 30% in 2022.

In the case of electric and hybrid vehicles used for public transport, subsidies will be reduced by 10% in 2021 and by 20% in 2022.

Beijing authorities want electric and hybrid cars to account for 20 percent of total car sales by 2025, up from about 5 percent now. Car companies, including Volkswagen AG, General Motors Co., Toyota and Tesla, have expanded their production capacity in Asia, where authorities are promoting electric and hybrid cars to reduce pollution.

The Ministry of Finance also announced that it will tighten the supervision of safety issues for electric and hybrid vehicles to prevent accidents.

Car sales in China, the world’s largest car market, are likely to increase by 5.4% next year to 27.5 million units, CAAM – the Asian Automobile Manufacturers Association – forecast this month.

In total, sales of electric and hybrid cars are expected to rise by 47% in 2022 to five million units.

By 2021, CAAM expects a 3.1% increase in sales to 26.1 million vehicles, of which 3.4 million are electric and hybrid cars.

In the first 11 months of this year, car sales in China rose 4.5% to almost 23.49 million units, although in November deliveries fell 9.1% to 2.52 million vehicles. due to the global shortage of semiconductors.

Electric and hybrid car sales rose 121.1% last month to about 450,000 units, while in the first 11 months of this year, electric and hybrid car sales rose 166.8% to 2 , 99 million units.

source: Agerpres.ro, photo source: Pexels / Markus Winkler

 
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