The state decided to concentrate efforts to stimulate sales of green cars in the segment of light commercial vehicles.
In mid-2019, support programs for buyers of electric vehicles, plug-in hybrids and hydrogen cars ceased to operate in China. This was reported back in 2014. Following this, the “green” began to fall sharply, as a result, by the end of the year, profit fell along with sales. The BYD example shows that the dependence for manufacturing companies is very unfavorable: with a 12 percent drop in sales, profit fell by 42%. Moreover, in the coronavirus first quarter, it was the sale of environmentally friendly vehicles that suffered the most. Tesla between the two poles of the epidemic: China supports, the US scolds
The Chinese government consulted and decided to return the benefits, but not completely. Firstly, the refundable amount of the price of a green car will fall by 10%. Secondly, the owner will be exempted from transport tax for only two years. Thirdly, the discount will be provided only for cars worth up to 300 thousand yuan (or $ 42.5 thousand). It turns out that in this situation, even for a Tesla Model 3 buyer, the discount will be unavailable, but for buyers in the LCV segment, on the contrary, there is a green light. In subsequent years, the discount will continue to decline – in 2021 already by 20% from the initial level, in 2022 – by 30%.
In addition, the government will increase the minimum range with which electric cars will fall under the discount program. Recall that initially it was only 100 km. In addition, regulators hope to whip up anonymous battery change technology, which could be an alternative to a long charging process. Meanwhile, all over the world it has already been recognized as a dead end, at least for the private segment. The fact is that over time, the capacity of a high-voltage battery decreases, so when changing, the owner always risks exchanging his new battery for an old one with a residual capacity of 40-50% of the original and even lower. Another thing is if you transfer to such a technology a taxi fleet in large cities. The new subsidy rules come into force from April 23.
Let’s look at the electric car market in China in the first quarter of 2020. The Tesla Model 3 is confidently in the lead – 16,747 cars have been sold. Following a tight group are BYD Qin Pro EV (8390), BAIC EU-series (7395), GAC Aion S (7038).