China released notice on further improving financial subsidy policy for NEVs

On December 31,2020, Ministry of Finance, Ministry of Industry and Information Technology, Ministry of Science and Technology, National Development and Reform Commission of China (Hereinafter abbreviated as the four ministries) jointly issued the “Notice on further improving the financial subsidy policy for the promotion and application of new energy vehicles” (CJ [2020] No.593, Hereinafter abbreviated as “notice”).

With a steady recovery in the economy and the support of related policies, China’s new energy vehicle market was recovering from the bottom in the second quarter, with total sales of 1,109,000 cars from January to November, and got a 3.9% increase over previous year. In order to further promote the sound and orderly development of the new energy vehicle industry, the four ministries jointly issued the notice based on the related provisions on the document of CJ [2020] No. 86, which made the 2021 new energy vehicle utilization promotion policy request more clearly.

Based on the provisions of the document of CJ [2020] No. 86, the purchase subsidy standard of new energy vehicle in 2021 will be reduced by 20% compared to 2020. To promote the electrification of automobiles in fields such as public transportation, urban public transportation, road passenger transportation, taxis (including online car -hailing), environmental sanitation, urban logistics delivery, postal delivery, civil aviation airport, and public sectors of government institutions, for new energy vehicles that meet requirements, the 2021 subsidy standard will be reduced by 10% compared to 2020. The above subsidy standards will come into force on January 1, 2021.

In 2021, a new inspection method for new energy vehicles will come into force. In order to ensure a smooth transition between the old and new standards, and considering the impact of the enforcement of the standard on the technical standard values of some vehicle products, for the plug-type hybrid (range extender) vehicles, which will be assessed by the new inspection method, the notice stipulates the technical index condition value requirements, such as rational cruising range and energy consumption, according to the same technical difficulty level. For other new energy vehicles’ technical indicators (conditions), which based on new inspection methods, are applied to the document of CJ [2020] No.86.

If the safety management system of a production enterprise is not in place, causing a major accident and being punished by the administrative department in charge; or if the enterprise does not take the initiative to recall the product, which already been known there are quality problems, and causing a major accident; or if the enterprise is ordered to recall by the administrative department, it shall be suspended or cancelled to be listed in the recommended models list, and at the same time, it shall also be suspended or cancelled to receive the financial subsidies and other measures according to the accident degree.

For the original text the above article, you can refer to the official website of China Association of Automobile Manufacturers as follows. (in simplified Chinese)

http://www.caam.org.cn/chn/9/cate_97/con_5232808.html