China Green Bulletin: China to Cut New-Energy Vehicle Subsidies by 30% in 2022

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China to cut new-energy vehicle subsidies by 30% in 2022

China will cut subsidies on new-energy vehicles (NEVs) by 30% in 2022 and eventually phase out the whole subsidy plan at the end of this year, according a notice 2022年新能源汽车推广应用财政补贴政策的通知 issued by the Ministry of Finance and three other ministerial agencies on Dec. 31. For NEVs for public transportation, subsidies will be cut by 20% in 2022. Since 2009, the Chinese government had handed out nearly 150 billion yuan ($23.5 billion) in subsidies for NEVs, creating the world’s largest market. In 2021 alone, 3.4 million NEVs were sold in China. With Tesla, local producers and other global automakers all ramping up NEV production, a competitive ecosystem has been established in this country.