China can extend it electric car subsidies as it concerns the slowdown in new car sales and the economy as a whole.
This year was supposed to end long-standing subsidies for electrical engineering in the country, but those who are aware of this say that government departments, including the Ministry of Information and Industrial Technology, are considering continuing subsidies until 2023.
Details of the possible extension are limited, which means it is not yet known how generous they will be and which vehicles will qualify for them. One of the measures envisaged is to reduce the planned 10 percent tax on the purchase of qualified fully electric and electrified vehicles to 5 percent.
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Initially, China intended to gradually abandon it E.V. subsidy scheme until the end of 2020, but it has been extended due to the COVID-19 pandemic. Reuters notes that more than 100 billion yuan ($ 14.8 billion) in subsidies have been provided to buyers of new energy vehicles in China since 2009.
Data from the China Automobile Manufacturers Association (CAAM) show that in April, new energy car sales rose 45 percent year-on-year to 299,000, but in March the growth rate was slower due to the fact that many Chinese cities are in COVID-19 . -19 locks until April. Total sales in China last month fell nearly 48 percent from April 2021, prompting CAAM to urge the government to consider providing additional assistance to the industry.
In addition to maintaining the existing EV subsidies more than originally planned, it is understood that China may introduce subsidies that will encourage rural buyers to buy NEV, giving them payments of up to 5,000 yuan ($ 740).