Forbes reports: the Chinese government is trying to protect its ailing electric vehicle market by agreeing Thursday to extend subsidies to the industry.
EV sales are struggling in China, even with the subsidies. A survey by the China Association of Auto Manufacturers on EV sales in Beijing showed that during the past two years sales of electric cars for individuals rather than government is next to zero.
Dong Yang, executive vice-chairman of the Association told China Daily that, “There are only a few people who spend their money on new energy cars. Here’s the thing, the central government approved the subsidies, but the local governments’ subsidy distribution system got delayed. Besides, the infrastructures for e-cars, like battery charging piles, are not keeping up with the government’s promise.”
EVs can save 6,000 yuan ($1,000) a year when you compare to fuel-driven cars. The problem has been with maintaining the battery. Over time, new batteries can cost as much as an entry level gas powered car
China will subsidize electric vehicles sold in 25 cities, expanding from the current five cities, and adopt a unified national subsidy standard, The 21st Century Business Herald reported on Wednesday citing China Association of Automobile Manufacturers.
“The new subsidy policy for electric vehicles (EV), still under research, will be issued soon, possibly shortly after the two sessions of NPC and CPPCC,” Ye Shengji, deputy secretary general of China Association of Automobile Manufacturers, was quoted as saying.
Beijing’s subsidies for EVs was introduced in 2010, but the policy was terminated last year.
China’s first purely electric car hit the market last summer as part of a government-sponsored project to encourage the use of energy-saving vehicles in the most polluted country on Earth. The Roewe E50 EV, sold first in Shanghai, pulled around $16,000 from its sticker price thanks to government subsidies. The E50 was developed by the Shanghai Automotive Industry Corp.EV sales are struggling in China, even with the subsidies. A survey by the China Association of Auto Manufacturers on EV sales in Beijing showed that during the past two years sales of electric cars for individuals rather than government is next to zero.
Dong Yang, executive vice-chairman of the Association told China Daily that, “There are only a few people who spend their money on new energy cars. Here’s the thing, the central government approved the subsidies, but the local governments’ subsidy distribution system got delayed. Besides, the infrastructures for e-cars, like battery charging piles, are not keeping up with the government’s promise.”
EVs can save 6,000 yuan ($1,000) a year when you compare to fuel-driven cars. The problem has been with maintaining the battery. Over time, new batteries can cost as much as an entry level gas powered car
