China Extends Subsidy Scheme for New-energy Vehicles to End-2022

On 23 April, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology and theNational Development and Reform Commission jointly issued a circular (Cai Jian No. 86 [2020]), extending subsidies on new-energy vehicle (NEV) purchases to the end of 2022, rather than ending them at the end of this year. Subsidies will be cut by 10%, 20% and 30% from preceding year in 2020, 2021 and 2022 respectively. In order to speed up the electrification of public transport, however, subsidies for eligible vehicles in areas including urban public transport, road passenger transport, taxis (including ride-hailing services), environmental hygiene, urban logistics and distribution, post and express delivery, civil aviation and business vehicles for party and government organs will not be cut this year, while reduction rates of 10% and 20% will be applied to subsidies for these vehicles in 2021 and 2022 respectively. In principle, 200,000 vehicles will be eligible for subsidies each year.

Source: Ministry of Finance