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New Energy Vehicle Subsidy New Regulations Implemented on the 12th

"After a 4-month policy transition period, the 2018 new energy vehicle subsidy policy will be formally implemented from today. New energy passenger vehicles with a life of 150 kilometers or less will no longer receive state subsidies.

From now on, with the exception of the fuel cell vehicle subsidy standard, during the transitional period, new energy vehicles and new energy buses will be subsidized at a rate of 0.7 times the 2016 new energy vehicle financial subsidy standard and 0.4 times the subsidy for new energy. For trucks and special vehicles, applying for subsidies will be implemented in accordance with the new standards.

On February 12, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued the ""Circular on Adjusting and Perfecting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles,"" and made substantial adjustments to the 2016 version of the subsidy policy. The major changes in the subsidy of the New Deal are mainly reflected in the following three aspects: The first is to further increase the energy density threshold requirements for power battery systems for pure electric passenger cars, non-fast-charged pure electric passenger cars, and special vehicles, and encourage high-performance power battery applications. The second is to adjust and optimize the subsidy standards for new energy passenger vehicles and reasonably reduce the subsidy standards for new energy passenger vehicles and new energy special vehicles. The subsidy intensity of fuel cell vehicles remains unchanged. Third, in order to completely eliminate fraudulent subsidies, no mileage requirements are applied for private subsidies for the purchase of new energy passenger vehicles, special vehicles for operation (including sanitation vehicles), official vehicles for party and government agencies, and vehicles at civil aviation airports. Other types are required. The mileage required for new energy vehicles to apply for financial subsidies has been adjusted to 20,000 kilometers. After the vehicle is sold on the license plate, a portion of the subsidy funds will be allocated according to the application. After the operating mileage requirements are met, all the funds will be disbursed. The subsidy standards and technical requirements will be implemented in accordance with the vehicle's annual driving license.

“The new subsidy policy is very clear in its intention. It is to guide auto manufacturers and power battery manufacturers to accelerate the pace of technological upgrading and promote the development of China's new energy automotive industry.” The person in charge of the Ministry of Industry and Information Technology explained that the subsidy policy in 2016 stipulates that life is 100 New energy passenger vehicles above the km can enjoy a minimum of 20,000 yuan in state financial subsidies, and the new standard clearly stipulates that new energy passenger vehicles with a life of 150 kilometers or less will no longer enjoy state subsidies. At the same time, the new standard proposes that the mass energy density of a power battery system for a pure electric passenger car should not be lower than 105Wh/kg (Wh/kg), and should be higher than 120Wh/kg and less than 160Wh/kg and 160Wh/kg and above. The models are subsidized by 1.1 times and 1.2 times respectively.

The improvement of subsidy standards and technical thresholds has sent a clear signal of technological upgrading to the industry. It is understood that the mainstream of domestic mainstream new energy car prices of pure electric passenger vehicles, cruising range into the era of 300 kilometers, of which, Teng potential 500, the upcoming SAIC Roewe MARVEL X, the maximum cruising range has reached 500 kilometers. The energy density of batteries provided by mainstream domestic power battery manufacturers has also increased rapidly. It is reported that at present, the energy density of the square-shell batteries supplied in large quantities in the Ningde era is between 190-210Wh/kg, and it will be increased to 210-230Wh/kg by the end of this year. By the end of this year, BYD will also mass-produce 220Wh/kg square-shell batteries.