Subsidies for electric vehicles will be phased off in China.
Authorities in China have stated that subsidies for electric and hybrid cars will be phased off at the end of the year, citing the sector’s strong sales as evidence that government support is no longer required.
The Ministry of Finance stated in a statement released Friday that purchase subsidies would be lowered by 30% beginning in 2022 before being phased out entirely by the end of the year.
“The subsidies… will expire on December 31 due to the growth of the industry for new energy cars, sales trends, and the smooth transition of manufacturers,” the ministry said.
“There will be no subsidies for vehicles registered after December 31, 2022.”
In China, sales of electric and hybrid cars have exploded, with rises of more than 50%.