China Resumes Subsidies for electric vehicles image

The chairman of BYD announced that beginning with April China will resume subsidies for EVs, part of the plan to promote environmentally friendly cars.

“The previous subsidy was for 2010 to 2012, so it terminated on Dec. 31, 2012. Now, the government is setting up standards and they should be announced in April or May,” BYD chairman said at an event in Hong Kong.

Three years ago Beijing and several other cities began offering subsidies of 60,000 yuan ($9,700) to buyers of EVs. Still, electric vehicle sales didn’t reach the targeted level due to high battery costs and the lack of charging facilities.

BYD announced its plan to introduce the Denza EV, which was developed in partnership with Daimler and production will begin during the first half of 2014. The automaker previously announced the car will hit showrooms in 2013, but it didn’t say why the date has been postponed. BYD, which is backed by billionaire Warren Buffett, said that it relies on its new and upgraded vehicles to boost profit in the first quarter after last year the company saw a plunge in sales.