China doubles cash subsidies to propel EV sales as economic growth falls short
- Consumers who replace their conventional cars with an EV stand to receive a subsidy of 20,000 yuan (US$2,770), up from 10,000 yuan announced in April
Beijing has doubled subsidies granted to electric vehicle (EV) buyers, just three months after it rolled out incentives to accelerate the transition of the domestic automotive industry.
Consumers who replace their conventional cars with an EV stand to receive a subsidy of 20,000 yuan (US$2,770) per vehicle, double the 10,000 yuan announced in April, according to a circular published by the National Development and Reform Commission and the Ministry of Finance on Thursday.
“All regional governments are encouraged to support vehicle purchase for replacement purposes,” the circular said. “As consumers dump their used cars, measures should be taken to bolster purchases of new passenger cars.”
Gross domestic product expanded 4.7 per cent on year in the three months to June, nearly 0.4 percentage points short of the growth predicted by Chinese financial data provider Wind.
EVs have been among the bright spots of the mainland’s economy since 2020. In June, a total 856,000 pure electric and plug-in hybrid vehicles were delivered to Chinese consumers, a year-on-year increase of 28.6 per cent.
