China to extend subsidies on electric cars past 2015

BEIJING Sat Feb 8, 2014 3:57am EST

Visitors look at Tesla Motors' Model S P85 at its showroom in Beijing January 29, 2014. REUTERS/Kim Kyung-Hoon

Visitors look at Tesla Motors' Model S P85 at its showroom in Beijing January 29, 2014.

Credit: Reuters/Kim Kyung-Hoon

BEIJING (Reuters) - China's Finance Ministry said on Saturday it will extend a programme of subsidies for buyers of electric-powered vehicles after the current subsidy regime, part of efforts to combat pollution in cities, expires in 2015.

The existing subsidies will be phased out by 2015 as planned, with a new regime to take effect after that date "to preserve policy continuity", the ministry said in a statement on its website. Details of the new subsidies would follow at an unspecified date.

The subsidies were designed to help China meet a goal of putting half a million new-energy vehicles, defined as all-electric battery vehicles and heavily electrified "near all-electric" plug-in hybrids, on the road by 2015 and 5 million by 2020.

Pollution in cities, in part caused by an explosion in car sales in recent years, is a hot-button issue for China's leaders, and several measures have been introduced, including curbs on sales of petrol-engined vehicles.

The current subsidies of up to 60,000 yuan ($9,800) are available for the purchase of an all-electric battery car and up to 35,000 yuan for a "near all-electric" plug-in vehicle were extended for a further three years at the end of 2012.

(Reporting by Jonathan Standing; Editing by Robert Birsel)

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Comments (3)
JohninFla wrote:
Can the authors please verify that the subsidies apply to IMPORTS as well? My understanding (and I could be wrong), is that the subsidies only apply to domestically produced vehicles. If that is the case your inclusion of the Tesla photograph can be very misleading since it would not qualify.

Feb 09, 2014 11:29pm EST  --  Report as abuse
JohninFla wrote:
Can the authors please verify that the subsidies apply to IMPORTS as well? My understanding (and I could be wrong), is that the subsidies only apply to domestically produced vehicles. If that is the case your inclusion of the Tesla photograph can be very misleading since it would not qualify.

Feb 09, 2014 11:29pm EST  --  Report as abuse
JohninFla wrote:
Can you please verify if the subsidies now ALSO include imported vehicles instead of those produced in China only?
If it is for domestically produced vehicles only your inclusion of a Tesla photo will cause confusion.
(please note this is the 2nd day I’m attempting to post this question)

Feb 10, 2014 6:47am EST  --  Report as abuse
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