The Chinese government was offering subsidies and incentives on electric vehicles to both consumers as well as the manufacturers but now the government of China will cut down the subsidies for car makers. China Govt Cut Down subsidies.
China Govt Cut Down Subsidies For Car Makers And Buyers
It had announced that it will stop giving subsidies which it uses to give before. By taking this step the Chinese government wants to encourage the local manufacturers to depend on the innovation and not on the government’s help.
Subsidies For Electric Car In China
Earlier the subsidy for an electric car having a range of about 400 km was 50,000 yuan (Rs.5,13,125.00) but now it has made half of it to 25,000 yuan (Rs.2,56,400.00). The subsidy got restricted and will be offered to only the vehicles having the range of more than 250 km.
The government had warned about this before but the deadline was not given for the end of all the subsidies. This concerned have been raised when the country successfully managed to set up an Electric vehicles industry.
China The Largest Producer And Consumer Of Electric Vehicles
China is the largest producer and consumer of electric vehicles across the globe. When everything is going right the government wants the automakers not to depend on the government’s funds but rather make their new innovations, introduce their new technologies and vehicles without depending on the government’s fund.
The Chinese, Finance Ministry announced the cut down of the subsidy in a statement on Tuesday. This move might result in an increase in the price of the EVs. Several automakers have confirmed the rise in the prices.
EVs Manufacturing Units BAIC Motor Corp And BYD Co. Shares Fell
After the announcement made the shares of the several top automakers in China including the electric car manufacturing unit of BAIC Motor Corp as well as BYD Co. fell drastically.
The finance ministry has also removed the subsidies for the buyers opting electric EVs including the buses and trucks post a three-month period starting Tuesday.
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