Is it true that subsidies for new energy vehicles are declining? Why are subsidies for new energy vehicles declining?

Recently, with the influence of macroeconomic pressure, the switch from National V to National VI emission standards, and changes in related policies such as subsidies, my country's new energy vehicle sales and production have declined. Many netizens are worried about whether new energy subsidies will also decline. Recently, the Ministry of Industry and Information Technology has stated that subsidies for new energy vehicles will not decline in 2020.

Is it true that subsidies for new energy vehicles will decline?

Recently, the Ministry of Industry and Information Technology has stated that subsidies for new energy vehicles will not decline significantly this year. On the afternoon of the 11th, at the China Electric Vehicle 100 High-level Forum, Minister Miao Wei stated that subsidies for new energy vehicles will not decline further on July 1, 2020. "In order to stabilize market expectations and ensure the healthy and sustainable development of the industry, there will be no significant decline.

I hope that industry enterprises will strengthen their confidence in development, increase innovation efforts, improve product quality, strengthen market development, and jointly promote the high-quality development of my country's new energy vehicle industry."

Why are subsidies for new energy vehicles declining?

In 2019, affected by macroeconomic pressure, the switch from National V to National VI emission standards, and the decline of related support policies such as subsidies, my country's new energy vehicle production and sales began to decline from July 2019. However, from a full-year perspective, the sales of new energy vehicles in 2019 still exceeded 1.206 million units.

From the trend point of view, the sales volume performance in November and December 2019 has returned to the average level before the decline, which shows that the negative impact of the policy decline is gradually recovering.

How will new energy vehicles transform in the future?

Wan Gang believes that in the future, electrification, intelligence and sharing will drive the transformation and upgrading of automobiles.

New progress has also been made in promoting the integration of new energy vehicles, information communications, intelligent driving and autonomous driving. The integration of smart cities, smart transportation and smart cars into an integrated platform has also explored new technical routes for intelligent networking and autonomous driving.

In promoting the integrated development of new energy vehicles and transportation, new energy vehicle companies are shifting from the single provision of automobile products to a new business model that combines multiple links such as product services, charging, and operations.

Related News

In response to the fact that "Minister Miao Wei said at the China Electric Vehicle Hundred People Forum on the afternoon of the 11th that the subsidies for new energy vehicles will not be further reduced on July 1, 2020", the relevant department heads of the Ministry of Industry and Information Technology explained to reporters that "in the development of my country's new energy vehicle industry, relevant support policies, especially fiscal subsidy policies, have played a very important role in cultivating the consumer market and driving industrial development. Since last year, due to the combined influence of multiple factors such as greater macroeconomic pressure, price reduction of National Five emission models, and the decline of fiscal subsidies, my country's new energy vehicle production and sales have declined for the first time. During the Hundred People Forum, many companies asked whether fiscal subsidies will decline around July 1 this year like last year, and whether they will be completely withdrawn by the end of the year. In response to this issue of common concern to companies, Minister Miao Wei responded at the meeting that in order to stabilize market expectations and ensure the healthy and sustainable development of the industry, this year's new energy vehicle subsidy policy will remain relatively stable and will not decline significantly. It is hoped that industry companies will strengthen their confidence in development, increase innovation efforts, improve product quality, strengthen market development, and jointly promote the high-quality development of my country's new energy vehicle industry."