China unveils green vehicle subsidy caps


BEIJING: China will cap subsidies and increase technical requirements for green energy vehicles starting next year in the wake of a subsidy cheating scandal, according to documents posted on the Ministry of Finance website.
The measures include a new formula for calculating central government subsidies and subsidy caps for electric and plug-in hybrid coach buses, with a maximum subsidy of 300,000 yuan ($43,000) per vehicle, roughly half of the previously listed highest subsidy of 600,000 yuan.
Local subsidies are also capped at 50 per cent of those awarded by the central government under the new policy, which goes into effect on January 1.
China has spent heavily on green vehicle subsidies, spending $4.5 billion last year alone, to encourage its automotive industry to leap frog ahead of global competitors in electric vehicle technology and combat heavy pollution in much of the country. The programme helped quadruple sales of electric and plug-in hybrid cars in 2015 and fuelled a 60 per cent jump this year. — Reuters