Date
18 August 2017
China is urging regional governments to unify their incentive policies for new-energy vehicles and end local protectionism. Photo: Bloomberg
China is urging regional governments to unify their incentive policies for new-energy vehicles and end local protectionism. Photo: Bloomberg

China to unify regional promotion policies for green vehicles

China’s State Council on Monday released a guideline on promoting the use of new-energy vehicles, calling on officials to unify the fragmented subsidy and incentive policies in different regions and eliminate local protectionism.

The cabinet, meanwhile, also vowed to step up construction of charging infrastructure for electric vehicles and include such facilities as an essential element in the urban master plans. It will grant special rewards to cities or firms which make notable contribution in building support facilities for new-energy vehicles or promoting and using such cars on a large scale.

One of the biggest problems faced by new-energy vehicle makers in China in recent years has been roadblocks put up by local governments on non-local firms. Industry insiders said last month that the situation has improved a bit in the past few months.

All Chinese new-energy vehicle brands will be eligible for government subsidies, the State Council stressed in its latest guideline.

Industry and information technology minister Miao Wei commented further in an interview with China National Radio on Monday. He said eligible players from all industries are welcome to enter the new-energy vehicle manufacturing sector, including even the internet companies. Miao noted that the government subsidy scheme is for domestic firms, not foreign players like Tesla.

Of the 20,692 units of new-energy vehicles produced in China in the first half of this year, 20,477 were sold, surpassing sales volume in full-year 2013, data from the China Association of Automobile Manufacturing showed.

“The market has stepped into a stage of development,” Miao said.

Vehicle purchase tax exemption will be granted to buyers of pure electric cars, plug-in hybrid electric vehicles and fuel cell vehicles from September 1 this year until the end of 2017. The government is also considering launching other incentive policies on vehicle and vessel tax, as part of new fiscal support polices for the industry for the period 2016 to 2020.

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