Chinese regulators issued a notice today saying that the implementation period of the new energy vehicle promotion and application of financial subsidy policies will be extended to the end of 2022.
The notice was jointly signed by the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission.
The notice stated that this will ease the intensity and pace of the subsidy withdrawal. In principle, the subsidy standards for 2020-2022 will be 10%, 20%, and 30% on the basis of the previous year.
From 2020, the number of new energy passenger vehicle and commercial vehicle companies applying for liquidation in a single declaration shall reach 10,000 and 1,000 respectively.
After the end of the subsidy policy, the final liquidation will be arranged for enterprises that do not meet the requirements for the number of liquidated vehicles.
The pre-subsidy price of new energy passenger cars must be less than 300,000 yuan (including 300,000 yuan).
The notice mentioned that the current purchase subsidies for fuel cell vehicles will be adjusted to select cities or regions with a foundation, enthusiasm, and characteristics. The focus will be on demonstrations of key technical components and industrial applications. The model cities will be rewarded by "substituting awards" (relevant notice will be issued separately)
According to the notice, in order to establish a hydrogen energy and fuel cell vehicle industrial chain in about four years, key core technologies have achieved breakthroughs, forming a good layout with reasonable layout and coordinated development.