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NEV Policy Likely to Be Tightened Up

Date:01-11 17:05 Authour:未知

NEV Policy Likely to Be Tightened Up

It was recently announced on the official website of Beijing Municipal Commission of Economy and Information Technology that, according to the Catalogue of Vehicles Recommended for NEV Promotion and Application and relevant requirements for registration of new energy vehicles (NEVs) in Beijing, 28 models, including the BYD Qin EV, would no longer be eligible for separate license plate number assignment for NEVs in Beijing, and for municipal financial subsidies.

Among new energy passenger cars, a total of 10 models from 8 auto makers have been removed from the list. In addition to the BYD Qin EV, another BYD model - the E6 - shared the same fate. Other victims of the cull were new energy passenger cars from Chang’an Automobile, SAIC, BAIC, Geely Automobile, Foton Motor and Beijing Hyundai. The common reason was that “outdated models had been taken off the market and the manufacturers had voluntarily applied to have them removed from the catalogue”.

If the NEV policy is going to be tightened up, then subsidies for NEVs in 2017 are due to fall by 20% in comparison to current levels. This estimate is based principally on the “Circular regarding Financial Support Policies for NEV Promotion and Application for 2016-2020” issued previously by a combination of four authorities including the Ministry of Finance. From 2017 to 2018, with the exception of fuel-cell vehicles, the level of subsidy will be reduced by 20% against that of 2016, and from 2019 to 2020, the level of subsidy will be reduced by 40% compared with that of 2016.

Comment: it is certain that the NEV policy will be tightened up. Developing the NEV market by providing subsidies is not a sustainable method, and will eventually lead to financial strain. It remains the case that in comparison with traditional fuel-driven vehicles, NEVs still have a lot of room for improvement in terms of quality and user experience. This applies particularly to factors such as concern over the driving range, and the problems associated with charging. A subsidy policy cannot be a substitute for resolving issues like these in terms of driving the long-term success of the NEV market.

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