Carmakers unveil electric ambitions for China despite subsidy cuts

The atmosphere at Shanghai’s annual motor show is always electric.

But this year, that statement has taken on extra meaning as carmakers unveil aggressive plans to boost their electric car offerings in China.

Even as policymakers drastically cut subsidies for new energy vehicles – a move guaranteed to intensify competition in an already crowded market – local and international brands eagerly unveiled their latest electric and hybrid models on the opening day of Auto Shanghai 2017.

China has already overtaken the US to become the world’s biggest electric car market, thanks to central government policies favouring new energy vehicles – in particular, generous industry subsidies over the past four years.

The grants, which are applicable to all-electric and plug-in hybrid vehicles, were reduced by 20 per cent at the start of this year and are set to be phased out altogether by 2020.

That hasn’t stopped car manufacturers diverting more and more of their resources into electric car development, although market watchers expressed concerns over falling sales and rising competition.