(Yicai Global) Nov. 27 -- The government of China's eastern municipality of Tianjin has decided to slash subsidies for new-energy vehicle purchases by 20 percent next year, local news outlet Enorth reported today.
For example, last year consumers could pick up an NEV model made by domestic manufacturer Chery Automobile Co. with a CNY90,000 (USD13,637) discount, but the concession fell to CNY63,000 this year and will fall by another CNY10,000 in 2018, a local sales representative said. Dealerships will absorb up to CNY5,000 of the extra cost, he added.
In line with the 2016 to 2020 NEV subsidy policy brought in by the central government, subsidies were to decrease by 20 percent this year and next year, and by 40 percent in 2019 and 2020. The central bank, the People's Bank of China, has raised the upper limit on NEV loans from 80 percent to 85 percent.
The total number of new-energy cars in Tianjin is set to increase by about 160,000 during the five-year period from 2016 through 2020, with 140,000 sales going to corporate and individual buyers. New-energy buses, taxes and delivery trucks will make up at least 35 percent of new public vehicles over the next five years, according to the plan.
After carrying out a pilot program in a number of cities, the Ministry of Public Securities will roll out special NEV license plates nationwide in the first half of next year.