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2018 New Energy Vehicles Car Subsidy Policy
Dec 20, 2017

Local subsidies for new energy vehicles Next year or canceled experts said that foreign secrets will be welcomed against the approaching turn of the year, the new year's subsidies for new energy vehicles brewing further tightening news to become the focus of attention. Recently, some media reported that the central government subsidy policy has been basically completed in 2018, and subsidies will no longer be granted to products with a mileage of less than 150 kilometers in the new subsidy policy.


At the same time, local subsidies also face or will be canceled. The report quoted people familiar with the situation as saying that the abolition of "land compensation" is intended to effectively solve local protectionism and control government spending. The plan may be implemented as early as next year.


"In the future, the central government will not be able to afford such huge subsidies." According to Yang Yusheng, a member of the Chinese Academy of Engineering, it is a long-term plan to adopt the market-driven policy instead of the integrated credit system to guide the orderly development of the market for new energy vehicles.


Chen Qingtai, chairman of China's electric car hundred society, said the government subsidies can be expected to fade out when foreign-invested and joint venture brands are massively entering the Chinese market.


Local subsidies next year or canceled


According to the incomplete statistics of "Securities Daily" reporter, the subsidies for new energy vehicles reached as high as 59 billion yuan in 2015 and exceeded 83 billion yuan in 2016. According to Yang Yusheng's calculation, according to the current development trend of new energy vehicles and the subsidy system after the recession, only the central government needs to pay as much as 390 billion yuan subsidy for new energy vehicles during the "13th Five-Year Plan" period.


In fact, although the overall subsidy for new energy vehicles in 2017 is as high as 40% lower than that in 2016, it is still hard to keep the domestic new energy vehicle market from continuing to grow exponentially. According to the statistics of China Association of Automobile Manufacturers, the cumulative production and sales volume of new energy vehicles in China in the first 11 months of 2017 amounted to 639,000 units and 609,000 units respectively, up 49.7% and 51.4% from the same period of last year respectively.


According to the latest exposure of new energy vehicles in 2018 subsidy information, compared with the amount of subsidies in 2017 and then slope back 40%. In the relevant technical indicators, the new policy increased the sub-file inspection on unit capacity and capacity consumption and raised the requirements on the energy density and fuel economy of the power battery system. At the same time, local subsidies or will face cancellation, the earliest implementation of next year.


According to estimates, in the future, "if the state subsidy is reduced by 20% each year, it needs 253.5 billion yuan of subsidy. If it goes down by 25% every year, it will still need 177 billion yuan after it has been withdrawn in four years." According to Yang Yusheng, % Of the rate of decline, will still be a huge financial expenditure.


Some analysts told reporters that the state financial subsidies have changed from dominant to auxiliary, the development of the industry will be mainly based on the market and driven by "double integration." The next step, the new energy car prices to further improve the technical level of the vehicle at the same time, but also to reduce the cost of three. Before relying on subsidies as the main source of profit car prices will face survival exam.


Subsidy car prices fade out the college entrance examination


Although the policy has not really come into force, the controversy has begun to change in the details of the new subsidy policy. And foreseeable central government subsidies corresponding to the heavy burden, is the rapid development of China's new energy market after the rapid development of hidden hidden dangers.


Reporters noted that, despite the global production and sales of the world leader, but the mainstream high-end models are lackluster, the overall sales of pure electric vehicles nearly Qicheng are A00-level small-capacity electric vehicles. If the new energy subsidy policy is implemented according to the draft scheme disclosed above, the level of subsidies granted to state-of-the-art A00 electric vehicles will be reduced by 50% from the previous level. In response, Chen Qingtai said the subsidy will fade out when the joint-venture brand counter-offensive date.


In fact, there are not many people in the industry who share the same viewpoints as Chen Ching-tai. A car analyst told reporters that the tightening of new energy vehicles subsidy policy which is among the automobile companies which are moving to the market-oriented wave. Lost the advantages of the policy, but also compete with the joint venture brand market, the survival of the fittest has been inevitable, leaving little time for own brand.


He also said that the joint venture Cheqi patent technology and intellectual property are mostly concentrated in the field of engine and gearbox fuel, will not be realized as much as the independent car prices before doing anything. However, as the fuel limit approaches and the new energy market continues to explode, the joint venture Chebi will make every effort to attack the new energy vehicles.