UPDATE 3-China to cut new energy vehicle subsidies by 10% this year [Reuters]
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Source: Reuters
China to cut new energy vehicle subsidies by 10% this year BEIJING (Reuters) - China will cut subsidies on new energy vehicles (NEV) such as electric cars by 10% this year, the finance ministry said on Thursday, following a decision last month to continue providing incentives to buy cleaner cars. The government had announced plans in 2015 to end the subsidies this year, but said in March it would extend them. China has set a target for NEVs, which also include plug-in hybrids and hydrogen fuel cell vehicles, to account for a fifth of auto sales by 2025, compared with the current 5%, as it seeks to cut pollution and cultivate home-grown auto sector champions. Under the new plan, China will extend subsidies for buying NEVs to 2022, and tax exemptions on purchases for two years. However, the subsidies will apply only to passenger cars costing less than 300,000 yuan ($42,376). That is likely to exclude premium electric vehicles such as those built by Germany’s BMW and Daimler. Tesla Inc’s
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