According to the Chinese Finance Ministry, China will cut subsidies on all new energy vehicles (NEVs) by 30% in 2022.
In addition, the country will end all subsidies for new NEVs by the end of 2022.
In 2020, they cut them by 10 per cent.
In 2021, they cut the subsidies by 20 per cent.
This latest 30 per cent cut would only be keeping with the same trend and keeping to the announcement in April 2020.
However, what does surprise some is the end of NEV subsidies by the end of 2022.
The Ministry noted that “given the industry’s growth for vehicles with new energy, the sales trends and the smooth transition of manufactures, the subsidies… will end on December 31”.
The Ministry also said that “vehicles registered after December 31, 2022, will not be subsidized”.
NIO confirmed on Friday that buyers of the ES8, ES6 or EC6 that paid the deposit on or before December 21, 2021, and are taking delivered of their purchases before March 31, 2022, can still enjoy the subsidies under the 2021 plan.
NIO would also take on any shortfall under the 2022 policy.
However, neither Tesla nor any other global automakers have yet to comment.