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Climate Action

China to extend electric vehicle subsidies past 2015

Ministry of Finance announces subsidies to be extended as China aims for 500,000 EVs by 2015 and 5 million by 2020

  • 10 February 2014
  • William Brittlebank

China‘s Ministry of Finance will extend a programme of subsidies for buyers of electric vehicles after the current subsidy regime expires in 2015, it said on Saturday.

The current subsidies programme will be phased out by 2015 as planned and a new regime to take effect after that date.

China has planned to increase the number of electric vechicles on the road to 500,000 by 2015 and 5 million by 2020.

Pollution in cities, in part caused by an explosion in car sales in recent years, is a a priority for China’s leaders, and several measures have been introduced, including curbs on sales of petrol-engined vehicles.

The current subsidies of up to 60,000 yuan ($9,800) are available for the purchase of an all-electric battery car and up to 35,000 yuan for a “near all-electric” plug-in vehicle were extended for a further three years at the end of 2012.