The Chinese automotive market is in decline and the plug-in segment (called New Energy Vehicle) – which is the biggest globally by the way – also is in reverse since mid-2019, when the subsidies were significantly cut.
According to the latest media reports, based on unofficial sources, the Chinese government is currently considering an extension of the subsidies.
The original plan was to gradually phase out the incentives by the end of 2020, but taking into consideration the outcome and then the coronavirus, China probably will not only abandon the plans to lower EV subsidies but extend the 25,000 yuan incentive for BEVs with NEDC range of 400 km (250 miles).
The New Energy Vehicle (NEV) credit quotas for manufacturers, at least in the near future, might not be enough to keep the momentum high.
We look forward to seeing the final decision, as the size of the Chinese NEV market weighs heavily on the global results and the growth is a matter of life or death for many Chinese companies.
Source: Automotive News