Here's Why You Should Care That China May Stop Local EV Subsidies

Sales

China is the world's largest auto market. Changes in the mainland mean changes for the rest of the world.

Despite the fact that China is well on its way to becoming the largest economy on Earth, it is by no means a land of free economy. Government regulations run rampant, dictating everything from which websites its citizens can access to which cars they can buy. That last part is mostly incentive-based, but it’s one of the main reasons automakers around the world have been making such a hard push for electric cars. With the Chinese government giving such high incentives to buyers, it’s little surprise that the market is adjusting to fill that demand.

While every automaker from Ford to BMW have announced plans to debut a slew of efficient vehicles designed to clear strict regulations and get drivers around with the least amount of carbon emissions possible, they are only doing so on the assumption that people will actually buy these cars. That's set to change soon in China according to a report by Bloomberg. That’s because the Chinese Ministry of Finance is planning to tell local governments to stop subsidizing electric car sales within their regions in an effort to stop mandates that encourage protectionism for automakers based within certain localities as well as to reign in excessive government spending.

You Might Also Like
10 Cars That Would Be Way Better With Turbos
10 Cars That Would Be Way Better With Turbos
The 1,000-HP Production Car Club Is Smaller Than You Think
The 1,000-HP Production Car Club Is Smaller Than You Think

That doesn’t mean that incentives from the central government will disappear, but the fact that there will be less of an incentive structure available for automakers that make electric cars could pose a problem for the industry. The central Chinese government’s current incentive structure favors cars that can run over 155 miles or more on a single charge, giving buyers up to $6,653 in subsidies, and caps local authorities from pitching in more than 50% of the central grant in their own subsidies. Now that the world’s largest auto market is cutting this large incentive program, there could be less people around who want to buy these new electric vehicles.

Will that put a stop to the billions of dollars that automakers have already invested in EV technology? Not likely, but even a slowdown of the movement can have an effect on which vehicles we’ll see on our roads in the coming years.

Ford Mustang Splits In Half In Illegal Street Race

This is the best example of dumb luck you'll ever see.

The World's Weirdest Wheel Designs

Sometimes the most basic customization tool goes drastically wrong...

Jaguar XE 300 Sport And XE SV Project 8 Create Modern Art

Two vastly different sports sedans that share a common thread.

LEAKED: Ford Mustang Shelby GT500 Revealed At Private Event

This is the first pic we have seen of the supercharged range-topper

All-New Revolutionary Mazda3 Teased Ahead Of LA Reveal

Along with its game-changing sparkless ignition engine.

WatchThe Extraordinary Nissan GT-R50 Being Built By Hand

It’s all about bending sheet metal the old-fashioned way.

Here's How Aerodynamics Make The Lamborghini Aventador SVJ So Much Faster

Take a behind the scenes look at this amazing system.

Fake Lamborghini Murcielago SV Reverse-Engineered By Iran

The Chinese couldn’t have done it better.

Hennessey Trackhawk Is World's Quickest SUV

That's what a thousand horsepower will do for ya.

What's Hot

Related Cars

Starting MSRP
$143,400

Related Reviews

2017 BMW i8 Review
BMW i8 Coupe
0
2017 BMW i8 Review