In a joint statement, China‘s Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology (MIIT) declared that the country will be extending its new energy vehicles(NEVs) subsidy program through the end of 2023. Teslarati reported that the program was scheduled to finish at the close of 2022.
According to the MIIT, the extension was made to increase vehicle sales and promote the growth of the NEV industry. The extended subsidy initiative will be available for cars bought in 2023 that are particularly qualifying models, as per the agency.
After a 2% fall in EV sales in 2019, China’s NEV market rebounded with a 17% growth in EV sales in 2020. The general structure of the most recent policy on subsidies is similar to earlier ones.
In order to be eligible for financial incentives, cars must fulfill minimum technical and performance standards, and the amount of the subsidy is dependent on a number of technical and utility factors.
Moreover, it is already planned to shortly publish an official list for the qualifying cars. It is worth noting that the Chinese government has now extended the NEV subsidy program three times with the recent MIIT’s decision.
The most recent extension would cost taxpayers almost 100 billion yuan, or more than $14 billion, and will conclude the program at the end of next year.
In the same way that China’s market for passenger cars in general is the largest on the planet, so is the country’s electric vehicle market. More than 57% of all EVs produced globally last year were produced in this country.
In fact, even Tesla‘s Gigafactory in Shanghai, which supplied vehicles for domestic clients as well as serving as an export center for the European market, accounted for the majority of the automaker’s worldwide deliveries.
The government of China has undoubtedly been persuaded by the expansion of the country’s EV industry to keep increasing subsidies even as the nation places a greater emphasis on environmentally friendly technologies and transportation.
Given that it is home to some of the biggest EV battery producers and suppliers worldwide, China may be regarded as the world leader in industries linked to electric vehicles.
To say the least, the largest EV firms in the world receive their battery cells from a Chinese manufacturer called CATL.
