Due to China’s policy issues, the sales of pure electrical vehicles (EVs) in 1Q16 dropped 90% from last quarter in China. Beijing is planning to announce new subsidies, yet, the official announcement hasn’t been made. Thus, manufacturers remain conservative toward the pure EV market.
According to Statistics from the Ministry of Industry and Information Technology, the sales of Chinese pure EVs downed 89% from 4Q15 to 6,265 units in 1Q16. It is believed that the lowered sales were caused by the postponed announcement on the new energy vehicle subsidies.
Ever since 2015, there were numerous Chinese new energy vehicle companies faked their numbers and tried to cheat to get subsidies from the government and it has caught the attention of the Chinese government. Therefore, the Chinese government will come up with new subsidies for new energy vehicles and may even cancel the subsidies by 2020. Those that get subsidized have been reduced from 3,412 types of new energy vehicles to 247 only.
Cheating to get subsidies allows buyers with connections to purchase light pure EVs without spending a dime, while those that really have the need couldn’t get it, according to a report.
China’s pure EV annual growth rate dropped significantly from 365% in 1Q15 to 84% in 1Q16. But the numbers showed this year seems to be more accurate, according to National Passenger Car Market Information Co-Secretary-General Choi Dong-Shu.
