Caixin
Jan 17, 2022 07:03 PM
TECH

Electric-Car Makers Hike Prices After China Reveals When Subsidies Will End

In 2021, auto sales in China, the world’s largest car market, rose 3.8% to 26.3 million vehicles, about 3.5 million of which were NEVs. Photo: VCG
In 2021, auto sales in China, the world’s largest car market, rose 3.8% to 26.3 million vehicles, about 3.5 million of which were NEVs. Photo: VCG

Tesla, Xpeng and several other electric-vehicle makers have raised their prices in China in the weeks since Beijing set a deadline for ending its financial subsidies for new-energy vehicles (NEV).

The subsidies that car buyers receive for purchasing electric and other vehicles that don’t exclusively burn fossil fuels was cut by 30% at the beginning of 2022, the Ministry of Finance said in a notice on Dec. 31, which also confirmed that the government will no longer provide the subsidies after this year. The incentives, which have been in place since 2009, were cut by 20% in 2021 and by 10% in 2020.

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