China’s central government is increasing subsidies for electric vehicles that can travel further on a full charge, sources told Bloomberg, whilst cutting back assistance for battery-powered automobiles.
Cars that can travel at least 400 km on a single charge will be now eligible for maximum incentives of RMB 50,000 ($7,900), according to a statement released by the finance ministry. The minimum distance was also moved up to 150 km, from 100 km, to receive any government incentives at all.
China has used incentives from both central and local governments to make the domestic electric vehicle industry more competitive. In a surprising move last week, Beijing showed interest in allowing local governments to continue to subsidize electric vehicle manufacturer in response to rising demand in the country.
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