China will further improve the industry policy system and adjust subsidy policy with higher threshold to better support excellent new energy vehicle makers.
With accumulate production from 2009 to 2015 standing at 497,000, China's new energy vehicle production now accounts for one third of the world's market. Wan Gang, head of China's Ministry of Science and Technology (MOST), says China launched a string of measures for the industry in 2015, including infrastructure improvement and introducing purchase subsidy, tax reduction, development support, consumption discounts as well as industry standards.
According to Wan, China has introduced 87 standards for new energy car building industry and five more are being studied. Lou Jiwei, head of the Ministry of Finance (MOF), earlier said that the initial aim of subsidizing consumers is to cultivate the infant market and it has approved effective. However, companies may start to rely on the subsidies and form new excessive production capacity.
Therefore, Lou suggests the subsidy policy should be adjusted and able to play a role in restructuring the supply side. To the companies that cheated with fake data for government subsidiaries, the MOF, the Ministry of Industry and Information Technology (MIIT), the MOST and the National Development and Reform Commission (NDRC) will launch especial investigation and strictly punish companies with fraud problems, says Lou.
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