By Dai Qi
Beijing City has made adjustments to its subsidy policy for new energy vehicles (NEVs) that make it clear the target of the subsidy should be the consumers, the Shanghai Securities News reported on Thursday.
The Beijing local government emphasized that consumers should be the beneficiaries of the NEV subsidy, which means the equivalent cost of the support should be deducted by the NEV producers or retailers when consumers purchase these vehicles.
After that, producers or retailers can apply for the cost deduction and be paid in advance by the local government.
However, the money they apply for should not surpass 60 percent of the price of the vehicle sold.
The China Beijing Environment Exchange is in charge of receiving and checking the applications and the Beijing Municipal Commission of Economy and Information Technology pays the subsidy to applicants.
The ratio of the subsidy from the central and the local government is 1:0.5.
It is worth mentioning that NEVs that apply for the subsidy should have an actual service mileage of at least 20,000 kilometers. Private NEVs are excluded.
According to the Shanghai Securities News, the subsidy policy of the Beijing local government has commenced, and it is from Jan. 1, 2018 to Dec. 31, 2020. The adjustments might be made with possible changes from the central government.
Statistics from the China Association of Automobile Manufacturers (CAAM) showed that in the first half of 2018, the sales volume of China's NEVs reached 412,000 units, up by 111.5 percent year-on-year.
It is predicted that the sales volume for the whole year will surpass one million units, according to another report by the Shanghai Securities News.
