Hyperdrive
China Weighs Further Cuts in Electric-Car Subsidies
- Nation switching away from carrots: Bloomberg NEF analyst Ali
- BYD, Guangzhou Auto among carmakers whose shares decline
This article is for subscribers only.
China is considering a further reduction in electric-vehicle subsidies next year as the government pushes automakers to innovate rather than rely on fiscal policy to spur demand for alternative-energy cars, people familiar with the plan said.
The average purchase incentive per electric vehicle may be lowered by more than a third from the 2018 levels, said the people, who asked not to be identified disclosing information that isn’t public. Vehicles may be required to be able to go at least 200 kilometers (125 miles) on a single charge to be eligible for incentives, up from 150 kilometers currently, said the people. The plan is still under discussion and subject to changes, they said.