American media reported that the supporting power for Chinese electric vehicles broke down.

According to released data, sales for alternative energy passenger vehicles slumped by more than 60% in January, compared with the year-to-year 300% growth in 2015 and 50% growth in 2016. The slump is not only resulted by the advanced consumption in spring festival holidays, but also greatly influenced by the reducing measures for implementing electric vehicles in the past two years.

The increasing frauds in alternative energy vehicle market force Beijing Municipal Government to conduct a series of changes in alternative energy vehicles’ subsidy policy. The new policies include the stricter requirements for speed and energy-consumption, setting upper limits for local government subsidies, decreasing 20% of subsidy standards and so on. For BYD and other companies that rely on the preferential policies, they will face tighter operating funds, less profits and increasing challenges. The new policies has raised entering threshold, providing no supports for continuous developments.

Reports said that serious retreats are taking place in auto industry, forming threats to global auto manufacturers. As part of efforts in controlling air pollution, those auto manufacturers are forced to produce electric vehicles in future five years in China. In the meantime, the target of offsetting other parts’ costs and achieving fuel economy also shows more difficulties.

Global auto manufacturers are investing in decreasing batteries’ costs and increasing batteries’ energy density.