The Chinese government will extend subsidies for electric vehicles to spur new car sales and economic growth in the country.
Subsidies for electric vehicles in China will end this year, but the Ministry of Information and Industrial Technology, is considering continuing subsidies until 2023.
According to Northcarolinatime.com, Monday (23/5/2022), the Chinese government has not specified how cheap it is and which electric vehicles are eligible for the subsidy.
One of the planned measures is to reduce the planned 10 percent tax on electric vehicle purchases.
China will gradually stop the subsidy scheme for electric vehicles, but the Covid-19 pandemic has made the government finally extend the subsidy scheme.
Reuters noted that more than 100 billion yuan, or about $14.8 billion in subsidies, had been given to new energy vehicle (NEV) buyers in China since 2009.
Meanwhile, data from the China Automobile Manufacturers Association (CAAM) showed that during April, sales of new energy cars rose 45 percent year-on-year to 299,000 NEV units.
Meanwhile, in March, the growth rate tends to be slower as several cities in China went into lockdown due to increasing Covid-19 cases.
Total NEV sales in China last month fell nearly 48 percent from April 2021, prompting CAAM to urge the government to provide additional assistance to the electric vehicle industry.