(Yicai Global) Dec. 7 -- Since 2017, Beijing's financial subsidies for new energy vehicles (NEV) have exceeded CNY1.6 billion (USD241.8 million). As the subsidies are very likely to decrease next year, the number of consumers purchasing new energy vehicles is significantly mounting.
The third batch of subsidies for the materials of new energy vehicles in 2017 covered a total of 15,728 vehicles and a total capital of CNY815 million was recorded under the subsidy policy, said Beijing municipal government. With the addition of the first two batches of subsidies, the financial subsidies for new energy vehicles surpassed CNY1.6 billion in Beijing in 2017, the Beijing Daily reported today.
Some 48,252 new energy vehicles were exempted from purchase tax in Beijing from January to October 2017, decreasing by 708 vehicles year-on-year, said the State Administration of Taxation. However, the tax-free amount totaled CNY1 billion, up 20.5 percent year-on-year, and on average, the tax-free allowance for a vehicle was CNY20,900, indicating that the average unit price of NEVs purchased by consumers in Beijing has risen.
In 2018, however, the subsidies for new energy vehicles may be brought down and the exemption of purchase tax will also be canceled. Thus, the price may rise CNY20,000 per vehicle. This expectation led to a marked increase in footfall, revealed a salesperson in a 4S shop.
The subsidies for all NEVs will not necessarily decline in 2018. The subsidies for certain vehicles with long range and high energy density of batteries may rise, the report said.