China plans to cap subsidies for electric cars image

The Chinese government considers not to grant incentives for some high-priced electric cars anymore, according to Bloomberg.

China was very slow to adopt the electric car trend until last year, but the government has lately speed up its efforts to encourage the emission-free technologies in the country. However, a recent proposal may slow down the momentum, as China considers not to grant incentives anymore for electric passenger vehicles costing more than 350,000 yuan (53,800 dollars), according to Bloomberg. People familiar with the strategy revealed that subsidies for electric buses will also be cut, by an average of 32 percent, with funding for the largest models reduced by as much as 49.5 percent.

This proposal has not been yet approved by the government, the sources said, but if it receives green light may have a negative impact on electric car sales. The demand for such vehicles jumped last year by more than three times, to hit 331,092 environmentally friendly cars in 2015. The world’s biggest auto market aims to have five million alternative-fueled vehicles on the roads by the end of the decade.

The electric cars expansion is a vital step in the country’s plans to reduce the emissions and dependency on imported oil. The pollution levels in China are at alarming levels, dozens of times higher than the safe limits. The local authorities have also committed to stimulate software companies to develop electric cars as well, as they have the know-how for bringing some new perspectives and innovations into the auto industry.

Via Bloomberg