Chinese officials have declared the termination of government financial aid for electric and hybrid automobiles by year’s end, citing robust market performance.
A Friday communiqué from the Ministry of Finance revealed a phased reduction, commencing with a 30% subsidy cut this year, culminating in complete elimination by December 31, 2022.
“Considering the progress of the new energy vehicle sector, market trends, and manufacturers’ seamless transition, financial incentives […] will cease on December 31, 2022“, the ministry stated.
“Registrations after December 31, 2022 will not qualify for subsidies“.
China has witnessed a surge in eco-friendly vehicle sales, with year-over-year growth exceeding 100% in recent periods.
The China Association of Automobile Manufacturers (CAAM) projected these vehicles to comprise 18% of overall sales in 2022.
This figure stood at only 5% in 2019.
CAAM forecasts 27.5 million vehicle sales (commercial and private) this year, up 5.4% from 26.1 million in 2021. Clean vehicles are estimated to account for 5 million units of this total.
CAAM reported 3.1% growth in 2021 for the world’s largest automotive market—the first annual sales increase since 2018.
China, a leading global emitter, aims for a predominantly emission-free vehicle fleet by 2035.
