Shanghai (ZXZC)- Government subsidies will no longer be granted to new energy passenger vehicles with a range less than 150km, according to a new subsidy policy which took effect on June 12.

According to the notice on adjustments of new energy vehicle subsidy policies released on Feb. 13, 2018, China set a transitional period between Feb. 12 and June 11, and afterwards would phase out corresponding subsidies. During the transitional period, the registered new energy passenger vehicles and buses enjoyed 70% of their 2017 corresponding subsidies, while the registered new energy trucks and specialty vehicles gained 40% of their 2017 corresponding subsidies. The fuel cell vehicle could receive the same amount of subsidies as that of 2017.

As the transitional period was over, the new NEV subsidies undergo several changes compared with 2017.

In terms of new energy passenger vehicle area, the subsidy will be divided into five levels depending on NEV driving ranges. The subsidies for NEVs with range between 150km and 200km will be reduced from RMB 36,000 to RMB 15,000. The range between 200km and 250km will be reduced from RMB 36,000 to RMB 24,000. The former subsidies for NEVs with range over 250km reached RMB 44,000. However, the range over 250km now was divided into three levels. Range between 250km and 300km will be granted RMB 34,000, NEVs with range between 300km and 400km will be subsidized RMB 45,000, and range over 400km will gain RMB 50,000. In addition, the plug-in hybrid passenger vehicle will be reduced by RMB 2,000 to RMB 22,000.

The new subsidy policy also prioritizes EVs with high energy density and low battery power consumption. As to energy density of batteries, the criteria of battery energy density were divided into four levels. The NEVs with battery energy density ranging from 105Wh/kg to 120Wh/kg will be granted 0.6 times subsidies, 120Wh/kg to 140Wh/kg, 1 time subsidies, 140 Wh/kg to 160 Wh/kg, 1.1 times subsidies, and more than 160Wh/kg 1.2 times subsidies.