The Chinese government’s policies toward electric vehicles are becoming more selective recently, signaling a push for higher performing products along with also potentially accelerate industry development, noted an analyst at Wood Mackenzie.
So while there have been reports of which state subsidies for electric vehicles (EVs) could be cut soon, This particular isn’t likely to slow down the momentum of the market there too much, Wood Mackenzie analyst Yujiao Lei told CNBC on Wednesday.
She explained: “of which could potentially slow a little bit, although not by a lot because what we are seeing in recent months can be of which while earlier policies are promoting all the EVs, recently, policies have become more selective.”
“So, like the latest subsidies in 2018, the item actually favors higher performing EVs rather than the lower end products,” Lei explained.
She added of which the dual subsidy scheme due to kick in later This particular year, will actually favor higher performing electric vehicles as well, along with also potentially accelerate the industry.
The dual credit scheme for EVs, slated to be implemented in April, can be a credit-based policy of which rewards or penalizes carmakers based on fuel consumption along with also driving range. Credits can be bought or sold within the market to meet the government’s targets.