New effort placed on developing new energy vehicle
China is to start a new, intensified phase of developing the new energy vehicle sector after the government exposed and punished dishonest subsidized manufacturers in a bid to clean up the chaotic sector.
The Ministry of Finance on Sept 8 made public five swindlers who illegally obtained $151.25 million in subsidies in 2015 from the central government after an investigation of 90 such manufacturers started in early 2016. Zhang Zhiyong, an independent auto analyst in Beijing, said some manufacturers had identified subsidies as a source of fast money from the very start and had no intention ofproducing competitive cars.
The central government started offering subsidies to stimulate the production of new energy vehicles in 2009.
The National Development and Reform Commission said that China is home to more than 200 manufacturers of new energy passenger vehicles, buses and special-use vehicles.