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Chinese officials declared their intention to eliminate governmental financial support for electric and hybrid vehicle purchases by year’s end, citing robust sector sales increases.
A declaration from the Ministry of Finance on December 31, 2021, detailed a phased reduction, beginning with a 30% cut in early 2022, culminating in complete cessation of aid by December 31, 2022.
The statement explained that “due to the substantial progress and market expansion of the new energy vehicle sector, along with a seamless transition by manufacturers, assistance will conclude…on December 31, 2022.”
China witnessed a remarkable upswing in clean energy vehicle sales, exhibiting over 100% year-over-year growth in recent periods.
Industry projections from the China Association of Automobile Manufacturers (CAAM), released last week, anticipate these vehicles comprising 18% of total Chinese vehicle sales in 2022.
This figure contrasts sharply with 2019’s less than 5% market share.
CAAM projects a total of 27.5 million vehicle sales in 2022, a 5.4% increase over 2021’s 26.1 million, with clean vehicles accounting for 5 million of the total.
The association’s 2021 forecast shows a 3.1 percent overall expansion in the world’s largest automotive market, marking a reversal of stagnant sales since 2018.
China, the world’s leading emitter of greenhouse gases, aims to establish a predominantly emission-free vehicle fleet by 2035.
