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Beijing slashes subsidies for EVs and plug-in hybrids
Automotive News China | 2019/3/29

Beijing has drastically reduced its subsidies for electric vehicles and plug-in hybrids and barred provincial governments from subsidizing the vehicles with the goal of winding up the subsidy program by the end of 2020.

Under rules that took effect Tuesday, electric passenger vehicles must have a range of at least 250 kilometers (155 miles) to qualify for subsidies, up from 150 km (93 miles) before, according to the Chinese Ministry of Finance. 

Electric passenger vehicles with ranges of 250 km to less than 400 km (249 miles) are entitled to 18,000 yuan ($2,679) in subsidies. 

Before, electric passenger vehicles with ranges of 150 km to less than 400 km were eligible for subsidies of 15,000 to 45,000 yuan.

The subsidies for electric passenger vehicles with ranges of 400 km and more have been halved to 25,000 yuan. 

For plug-in hybrid passenger vehicles, the subsidies have been slashed to 10,000 yuan from 22,000 yuan.

Beijing has also cut its subsidies for electric and plug-in hybrid buses and trucks by roughly 50 percent. 

Under previous rules, governments of provinces, municipalities and autonomous regions in China could subsidize local sales of EVs and plug-in hybrids with amounts up to 50 percent of the central government subsidies. 

Now local governments must stop providing subsidies for EVs and plug-in hybrids and use the money for the construction of battery charging stations for these vehicles, according to the new rules.

Thanks to generous government subsidies, sales of EVs and plug-in hybrids in China have been strong for years. 

In the first two months of this year, total sales of EVs and plug-in hybrids in China nearly doubled from a year earlier to 148,000.

In 2018, sales of such vehicles across the country approached 1.26 million, a jump of 62 percent year on year.

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