Report: China to Cut PHEV/EV Subsidies Drastically By 2020
Following an announcement from Shanghai GM earlier this month wherein the automaker said that it will commit a significant portion of $4.3 billion USD to building 10 “new-energy models” for the Chinese market, policy documents posted to the Chinese finance ministry’s website on Wednesday revealed the country’s plans to roll back subsidies for PHEV and electric vehicles and drop subsidies for traditional hybrids altogether.
As reported by Reuters, the policy states that China will scale back PHEV/EV subsidies by 20% between 2017 and 2018 and 40% between 2019 and 2020. This move would mandate price drops for plug-in hybrids and electric vehicles, which would serve to make them more palatable to new car buyers. This move also coincides with the fuel economy and emissions standards deal outlined last November.
Earlier in April, Shanghai GM announced that it would invest $16 billion USD to expand its lineup in China by as many as 10 new models every year. Not only would this expansion plan include 10 new-energy models—presumably powered by technology similar to that seen in the 2016 Volt or the upcoming Bolt EV—but it would also a number of new engines and transmissions that will improve average fuel economy by as much as 25% to 30%.
News Source: Reuters