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China intends to cancel subsidies for the purchase of electric and hybrid cars at the end of the year, according to the authorities, in light of the growth in sales in this sector.
In a statement issued on Friday, December 31, 2021, the Ministry of Finance announced that this aid will be reduced by 30%, starting at the beginning of the year, before stopping it completely at the end of 2022.
“Due to the development of the new energy vehicle sector, growth in sales and a smooth transition of manufacturers to these models, assistance will be discontinued…on December 31, 2022,” the statement read.
China recorded a surge in sales of clean energy vehicles, with a year-on-year increase of more than 100% in recent months.
These cars are expected to make up 18% of all vehicle sales in China in 2022, according to what the China Association of Automobile Manufacturers (CAAM) revealed last week.
In 2019, the percentage of these cars did not exceed 5%.
The association expected that car sales would reach 27.5 million units this year, compared to 26.1 million in 2021, an increase of 5.4%, with clean vehicles representing 5 million units of this total.
The association’s forecasts for the year 2021 indicate an overall growth of 3.1 percent for the world’s largest auto market, after no increase in sales has been recorded since 2018.
China, the world’s largest polluting country, aspires to build a fleet of mostly non-polluting cars in 2035.
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