A relevant official from the Department of Economic Construction of the Ministry of Finance said that the subsidy policy for new-energy vehicles is not set in stone. 2016 Since [year], China has implemented a dynamic adjustment mechanism based on factors such as technological advancements, cost changes, and developments in both domestic and international industries.

In this adjustment, the technical thresholds have been appropriately raised in accordance with the principles of technological advancement, reliable quality, and guaranteed safety. Specifically, the threshold for energy density of power battery systems in new-energy vehicles has been steadily increased; the energy consumption requirements for new-energy vehicles as a whole have been moderately raised; and the minimum range requirement for pure electric passenger vehicles has been enhanced.

Regarding subsidy standards, the notice clearly states that, in light of factors such as economies of scale and cost reductions in new-energy vehicles, as well as the provisions on phasing out and withdrawing subsidy policies, subsidy levels will be reduced to promote survival of the fittest within the industry and prevent sharp fluctuations in the market.

       The official explained that this adjustment is aimed at intensifying the phasing out of subsidies and gradually easing the pressure. According to... 2020 The institutional arrangement for phasing out subsidies after [year], in order to ensure a smooth transition for the new energy vehicle industry, adopts a phased approach to gradually release and adjust the pressure—namely, 2019 Annual subsidy standard is at 2018 Average decline on a yearly basis 50% , to 2020 The subsidy reduction will be fully implemented by the end of the year. “ This rate of decline in subsidies roughly matches the current rate of reduction in the overall vehicle cost. ”

      The phasing out of subsidies isn't solely due to declining costs. The official stated that as the new-energy vehicle industry rapidly expands in scale, the prolonged implementation of subsidy policies has led some companies to develop... “ Subsidy Dependence ” Industry competitiveness is weak.

      This adjustment, in terms of subsidies... “ Do subtraction ” At the same time, focus efforts on service and regulation. “ Do addition. ” Take the optimization of the clearing system as an example. The current policy stipulates that vehicles in operation applying for subsidy clearance must meet the following requirements: 2 10,000 kilometers of driving mileage. Some enterprises have reported long settlement times and significant pressure from capital occupation. To ease the financial burden on enterprises, the new policy stipulates: starting from... 2019 Starting this year, for vehicles with operational mileage requirements, a portion of funds will be pre-allocated immediately after the vehicle is sold and registered, to meet... 2 Settle the account after 10,000 kilometers.

     In terms of regulation, the notice clearly states that a product safety monitoring system will be established and... “ Consistency ” Regular spot-check mechanism. For vehicle models that have caused major safety accidents due to product quality issues, or that have been identified by relevant authorities as having significant quality defects, their inclusion in the recommended model list will be suspended or canceled, and corresponding financial subsidies will be temporarily postponed or canceled accordingly.