Manufacturing News

Beijing to scrutinize sales of EVs, plug-ins

The Chinese government will regularly inspect sales of electric cars, plug-ins and other fuel-efficient vehicles built by automakers in China to make sure they are serious about developing 'green' vehicles.

Green vehicles will be removed from the list of models eligible for government subsidies if no sales of the vehicle are realized one year after it enters the list, according to a government notice.

Moreover, an automaker will no longer qualify for government sales subsidies if more than half of their green models are removed from the subsidy list.

In June 2010, Beijing launched a subsidy program in Changchun, Hefei, Shanghai, Hangzhou and Shenzhen to encourage the development and sales of green vehicles.

Under the program, EVs built in China and sold in five cities qualify for subsidies up to 60,000 yuan ($9,500). Plug-in hybrids can qualify for incentives up to 50,000 yuan.

Fuel-efficient gasoline-powered vehicles and conventional hybrids are eligible for a subsidy of 3,000 yuan.

To please the government and polish their image, nearly all Chinese automakers have announced plans to produce plug-ins and EVs. But few have disclosed their EV sales.

In this week's announcement, Beijing also urged the five cities in its pilot program to accelerate construction of vehicle charging stations and offer additional EV sales incentives. If these cities fail to do so, they will be expelled from the pilot subsidy program, according to the government.

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