Electric car subsidies in China

Electric car charging China

The Chinese government supports the transition to electric mobility with a variety of incentives. Below we give an overview of the most important subsidies that exist for electric cars and hybrids.

Overview:

1. Electric Cars
1.1 NEV Subsidy
1.2 Road Tax

2. Plug-in Hybrids
2.1 NEV Subsidy
2.2 Road Tax

3. Hybrids
3.1 Road Tax

1. Electric Cars

1.1 NEV Subsidy

The Chinese government refers to low emission vehicles as “New Energy Vehicles” (NEVs), and created a program to subsidise this vehicle category in 2009.

Chinese electric car manufacturers receive NEV-subsidies per sold vehicle. For a fully electric car (BEV) with an official range of more than 400 km they receive ¥25.000 (3.310€ in April 2019). Electric cars with a range between 250 and 400 km get ¥18.000 (2.380€ in April 2019). If the range is lower than 250 km, there is no subsidy.

These values have been different in the past. The Chinese government announced that it will stop subsidising electric cars after 2020.

1.2 Road Tax

In many regions in China, 100% electric cars are exempt from yearly road taxes.

2. Plug-in Hybrids

Just like for fully electric cars (BEV), manufacturers can get subsidies for plug-in hybrid cars (PHEV) as well. For a PHEV with an electric range of more than 50 km, they receive ¥10.000 (1.320€ in April 2019). This amount used to be higher before June 2019, but is being phased out and will totally disappear after 2020.

2.1 Road Tax

Just like BEV’s, plug-in hybrids are exempt of road tax in many regions.

3. Hybrids

3.1 Road Tax

In many Chinese regions, normal hybrid cars get a 50% reduction on the yearly road tax.

 

Do you know about other EV incentives in China? Contact us.