EV sales growth slows as Beijing probes subsidy fraud
Fast-rising sales of electric vehicles and plug-in hybrids in China have shown signs of slowing as the government probes media allegations that automakers inflated EV deliveries to obtain bigger subsidies.
In March, combined sales of EVs and plug-in hybrids jumped 46 percent year on year to 22,936 vehicles, according to the China Association of Automobile Manufacturers. The figure includes 17,637 EVs and 5,299 plug-ins hybrids.
The growth, albeit impressive, was significantly lower than the 170 percent growth rate in January and February, and it was much lower than the annual growth of 340 percent in 2015.
Nevertheless, combined deliveries of EVs and plug-in hybrids in the first three months of 2016 reached 58,125 vehicles, doubling the tally in the same period last year.
Prompted by media reports about Chinese companies that cheated to obtain EV subsidies, Beijing launched a probe in January. While the central government has yet to complete its investigation, several provinces and municipalities including Shanghai have reduced subsidies for EVs and plug-in hybrids.
Under China's existing policy, only EVs, plug-in hybrids and fuel-cell powered vehicles qualify for government subsidies. Conventional hybrids do not qualify.
In the past few years, more than 10 Chinese cities have started restricting new-car sales to ease traffic congestion. But to encourage the use of green vehicles, most of these cities have exempted EVs and plug-ins from the restrictions.
The growth, albeit impressive, was significantly lower than the 170 percent growth rate in January and February, and it was much lower than the annual growth of 340 percent in 2015.
Nevertheless, combined deliveries of EVs and plug-in hybrids in the first three months of 2016 reached 58,125 vehicles, doubling the tally in the same period last year.
Prompted by media reports about Chinese companies that cheated to obtain EV subsidies, Beijing launched a probe in January. While the central government has yet to complete its investigation, several provinces and municipalities including Shanghai have reduced subsidies for EVs and plug-in hybrids.
Under China's existing policy, only EVs, plug-in hybrids and fuel-cell powered vehicles qualify for government subsidies. Conventional hybrids do not qualify.
In the past few years, more than 10 Chinese cities have started restricting new-car sales to ease traffic congestion. But to encourage the use of green vehicles, most of these cities have exempted EVs and plug-ins from the restrictions.
