China to scrap subsidies for electric vehicles
China will end subsidies for electric and hybrid cars at the end of the year, authorities have announced, saying the strength of sales in the sector meant state support was no longer needed.
In a statement published on Friday, the Ministry of Finance said purchase subsidies would be reduced by 30% from the beginning of 2022 before being scrapped completely by the end of the year.
“Given the growth of the industry for vehicles with new energy, the sales trends and the smooth transition of manufacturers, the subsidies… will end on December 31,” the Ministry said.
“Vehicles registered after December 31, 2022 will not be subsidised.”
Sales of electric and hybrid cars have boomed in China, with increases of more than 100% year-on-year in recent months.