China considers extending electric vehicle subsidies in potential boost for automakers
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China is reportedly talking to automakers about extending subsidies for electric vehicles once again. The subsidies were originally set to be phased out by the end of 2020 before the pandemic hit and the Ministry of Information and Industrial Technology extended them for 2021 and 2022.
The subsidy terms for 2023 have not been finalized including which vehicles would qualify, according to Reuters. One option said to be under discussion is rolling back a planned purchase tax that would cover EVs.
A recent slowdown in the Chinese economy and the continued supply chain disruption in Shanghai due to COVID outbreaks appear to be the major considerations by Beijing in extending the subsidy program another year.
The electric vehicle subsidy program has seen about 100 billion yuan ($14.8B) handed out to electric vehicle purchases since it started in 2009. The tally includes subsidies for commercial fleet operators.
Beijing's stance on EV subsidies could have broad implications for the auto industry in China and outside the region.
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