China sales of EVs, plug-in hybrids plunge 74% in January
Sales of electric and plug-in hybrid vehicles in China plunged 74 percent year on year in January to only 5,682 units as Beijing cracked down on companies that cheated to inflate their EV subsidies.
Deliveries of battery-electric vehicles fell 68 percent to 4,978 units, while plug-in hybrid sales dropped nearly 90 percent to 704 units, according to the China Association of Automobile Manufacturers.
The central government has required all automakers to reapply for their models to receive subsidies.
"Factory owners can't sell cars they have now as they are not on the list, and are worried they won't get the subsidies either," said Xu Haidong, the manufacturers association's assistant secretary general. "This has had an impact on new energy vehicles' sales and is the reason behind the big drop-off."
Despite the sharp decline in January, sales are expected to recover as the government restores EV models to its "approved" list.
Last month, China released an initial list of "recommended" EVs and plug-in hybrids, paving the way for 185 car models to receive government subsidies. Beijing published five lists last year, giving the green light to 2,193 car models.
The government has forecast EV and plug-in hybrid sales will range from 700,000 to 800,000 vehicles this year, up from 507,000 in 2016.
The central government has required all automakers to reapply for their models to receive subsidies.
"Factory owners can't sell cars they have now as they are not on the list, and are worried they won't get the subsidies either," said Xu Haidong, the manufacturers association's assistant secretary general. "This has had an impact on new energy vehicles' sales and is the reason behind the big drop-off."
Despite the sharp decline in January, sales are expected to recover as the government restores EV models to its "approved" list.
Last month, China released an initial list of "recommended" EVs and plug-in hybrids, paving the way for 185 car models to receive government subsidies. Beijing published five lists last year, giving the green light to 2,193 car models.
The government has forecast EV and plug-in hybrid sales will range from 700,000 to 800,000 vehicles this year, up from 507,000 in 2016.
