New energy car

China is planning to drive upgrades in power battery technology bycategorizing subsidy-eligible new energy models according to more specific details, including driving range, battery density and energy consumption.

The new energy subsidy program has been through panel discussions at four national ministries. Sources familiar with the matter said that a renewed plan is coming very soon.

The new plan might give more subsidies to electric cars that incur higher costs given their larger battery packs.

According to the sources, fully electric cars that can drive farther than 350 km will be eligible for a 50,000 yuan subsidy in 2018, 13.6% more than that offered this year; those with a driving range between 300 km and 350 km will receive a 45,000 yuan subsidy, 1,000 yuan more than this year.

On the other hand, the central government will give less to vehicles with a driving range lower than 300 km, while those below 150 km will not receive a penny.

Shu Chang, a partner of Roland Berger Strategy Consultants, told China Daily that the new plan clearly demonstrates a determination to push forward new energy vehicle development.

He said: "The refreshed subsidy plan targets vehicle driving ranges, and aims to promote upgrades in the new energy vehicle industry."


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