China has just officially announced a new policy that encourages the use of new energy vehicles (NEV) in rural areas.
China’s Ministry of Industry and Information Technology (MIIT), Ministry of Agriculture and Rural Affairs, Ministry of Commerce and National Energy Administration have issued a policy package in an effort to increase NEV consumption in rural areas, according to an announcement posted on the MIIT website.
The campaign will run from May to December 2022, and the China Automobile Manufacturers Association (CAAM) will implement it, with support from government agencies.
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The target areas included in this campaign are Shanxi, Jilin, Jiangsu, Zhejiang, Henan, Shandong, Hubei, Hunan, Hainan, Sichuan and Gansu.
BYD’s Dolphin, E2, Yuan Pro, Yuan Plus, Qin Plus EV, Song Plus EV, GAC Aion’s Aion Y, Aion S, Aion S Plus, Aion V Plus, SAIC-GM Wuling’s Mini EV, Kiwi EV, Rongguang EV, Nano EV are included in the list of models eligible to participate in the campaign.
It was not stated whether the government would subsidize the campaign, although local media reported that each vehicle could receive a subsidy of RMB 3,000-5,000.
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In addition to stimulating NEV purchases in rural areas, China also announced a policy of support for traditional internal combustion engine (ICE) vehicles.
China will cut the tax on purchases of passenger vehicles with a capacity of 2.0 liters or less in half. The discount applies to purchase dates between June 1 and December 31 and the price does not exceed RMB 300,000.
