Ye Shengji, deputy secretary-general of the China Association of Automobile Manufacturers, recently stated that the country’s subsidy continuation policy for new energy vehicles is being formulated and it will come out at the earliest after the two sessions of the country. According to sources close to the policy development department, the biggest change in the continuation of the subsidy policy may be the unification of local subsidies, changes in the amount of subsidy among local governments, and the situation of local governments.
In May 2010, the Ministry of Finance promulgated the Interim Measures for the Administration of Privately-purchased Pilot Financial Assistance Funds for New Energy Vehicles, which stipulates that the pilot period will be from 2010 to 2012. At present, the pilot has already expired and the continuation policy is gathering information and formulating the process.
After the country promulgated the subsidy policy, localities followed suit to provide local financial subsidies. However, the amount of subsidy varies from place to place, and even the gap is large, which has set obstacles for enterprises in the promotion of new energy vehicles. For example, in Guangzhou and Shenzhen, which are major cities in South China, there is a huge gap in local subsidies. The subsidy of pure electric vehicles in Shenzhen is higher than Guangzhou's 50,000 yuan per vehicle. A senior manager of a new energy auto company said that local financial protectionists became famous and began to gain popularity because local financial subsidies must target local companies to obtain tax revenues after they were cultivated.
According to sources close to the continuation of the subsidy of the New Deal formulation department, this situation may be changed, and relevant departments are considering new forms of subsidies, including balancing local subsidies to change their own governance and break protectionism.
In addition, according to the “Energy-saving and New Energy Vehicle Industry Development Plan (2012-2020)†(hereinafter referred to as the “Planningâ€) promulgated last year, it is estimated that the cumulative sales of electric vehicles in China will reach 500,000 by 2015 and 5 million by 2020 Vehicle.
However, the pilots in the past two years have poured cold water on industry expectations. According to the data from the China Association of Automobile Manufacturers, the number of demonstration electric vehicles promoted by China after the start of pilot subsidy was a total of 27,432 vehicles, of which 23032 were public vehicles. The number of cars purchased is 4,400.
The new subsidy for the new administration urgently needs to change this situation. According to sources, the new subsidy policy will expand the pilot cities. 25 pilot cities for the demonstration and promotion of new energy vehicles are likely to receive central subsidies. Unplugged hybrid vehicles may be included in the subsidy. In previous subsidy policies, central subsidies were limited to plug-in hybrid and pure electric vehicles.
A government official in Shenzhen thinks that the subsidy version of the 2010 central government did not subsidize the charging infrastructure for new energy vehicles, resulting in an important reason for restricting the private purchase of new energy vehicles. The central government should increase support for infrastructure construction. .
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