New standards
2017 draws to an end and we have news on China’s electric vehicle subsidies for 2018. Major changes lie ahead. Firstly, the new subsidy policy is designed to encourage higher range and lower energy consumption in electric vehicles, while removing and decreasing subsidies to lower ranged models. Additionally, a key policy change is that regional subsidies are coming to an end in China.
The rules
The 2018 subsidy scheme is in line with the end goal of withdrawing subsidies and pushing automakers to make better electric vehicles.
Firstly, vehicles with driving range below 150 km will not receive subsidies, vehicles with 300 km of driving range will get the current electric vehicle subsidies, and ranges over 400 km have higher subsidies. This is to encourage automakers to produce longer range vehicles.
Secondly, battery power/weight requirements have been increased, increased from 90 wh/kg to 105 wh/kg. They also only apply the full subsidy for vehicles with 140 wh/kg batteries, again pushing for better electric vehicles.
Thirdly, power consumption requirements have been increased, pushing for more efficient vehicles, which fit into the government policy to push the development of better electric vehicles and the underlying technology.
In 2016, China outlined that its subsidies for new energy vehicles will end by 2020 and that they will drop 20% each year until 2019, when they will decrease 40% based on 2016 levels, which will then completely end the subsidies.
Electric vehicle subsidies impact all areas of transport in China. They have had a massive impact on the tremendous growth of China’s electric bus market, as can be seen here, in our 2017 Chinese electric bus news roundup.
Automaker reaction
Chinese automakers have not been caught out by these developments, as a number of 300 km range electric cars have been launched.
BAIC EU300
The EU300 from BAIC has a reported range of 300 km and supports both fast charging and battery swapping. It is claimed to have low energy consumption and high efficiency.
Chery Tiggo 3Xe
The Tiggo 3xe from Chery has 351 km of range and also supports fast charging.
Dongfeng Fengshan E70
The Fengshan E70 has a range of 350 km and is yet again equipped with fast charging capability.
Geely Dorsett (Emgrand) EV300
The Geely Dorsett EV300 has a range of 360 km and is — surprise, surprise — is capable of fast charging.
Sources: www.evpartner.com, www.evpartner.com, www.evpartner.com