Chinese carmaker Chery on Saturday rejected allegations that it had improperly claimed government subsidies for new energy vehicles (NEVs), following an audit that disqualified subsidy declarations by Chery and BYD totaling $53 million.
The audit, carried out by the Ministry of Industry and Information Technology (MIIT), reviewed applications for NEV subsidies over a five-year period through 2020. According to documents released in June, the ministry disqualified 21,725 vehicles due to issues such as missing documentation or failing to meet required mileage thresholds. Chery accounted for 7,663 of the disqualified vehicles, with 7,643 removed for not providing end-sale certificates and 19 for mileage-related issues.
In a statement, Chery said it had “truthfully reported to the authorities we did not collect certificates for end sales,” and emphasized that “there’s no fraudulent act.” The company added that it had previously consulted with government agencies regarding challenges in documentation for vehicles sold more than five years ago and had been advised to proceed with declarations for further determination.
Chery also noted that the audit covered declarations for subsidies that were not prepaid, meaning there is no requirement for reimbursement. The audit report did not specify penalties or repayment obligations but reiterated that automakers may need to return funds for vehicles that failed to meet mileage requirements.
The MIIT documents did not accuse any companies of fraud. The disqualified claims accounted for nearly 60% of all invalidated subsidy declarations reviewed during the audit.
Source: Reuters