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Ruining it for everyone department: China cuts EV subsidies in response to fraud

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Human nature would seem to be the same, East or West, and China’s rush to dole out generous EV subsidies has inspired a wave of fraud and abuse, some of it highly creative. A whimsical plan for a traffic-straddling electric tram fell apart amid a scandal that resulted in 32 arrests. In another case, companies collected subsidies for entire electric bus factories that never existed.

Now the Chinese government has announced that it will reduce manufacturer subsidies for plug-in vehicles by about 30%, a move described by Nikkei Asian Review as a response to widespread fraud.

The revamped subsidy program, which recently took effect, grants automakers 24,000 yuan ($3,780) for each EV with a range of 200-250 km, a reduction from the previous 36,000 yuan. Also, the minimum range to qualify for subsidies has been raised from 100 km to 150 km.

The changes to the program will last through June 11, at which time the government will assess sales trends and re-examine the subsidies.


Source: Nikkei Asian Review

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