China said to con­sider cutting sub­si­dies for elec­tric buses

The Pak Banker - - 6BUSINESS -

BEI­JING: China is propos­ing to cut the amount of sub­si­dies for elec­tric buses be­cause the pol­icy was con­sid­ered overly gen­er­ous, while im­pos­ing a price ceil­ing on pas­sen­ger ve­hi­cles that qual­ify for in­cen­tives, ac­cord­ing to peo­ple familiar with the mat­ter. In­cen­tives for elec­tric buses will be cut by an av­er­age of 32 per­cent, with fund­ing for the largest mod­els re­duced by as much as 49.5 per­cent, ac­cord­ing to the peo­ple, who asked not to be iden­ti­fied as the de­lib­er­a­tions are pri­vate. Elec­tric pas­sen­ger ve­hi­cles cost­ing more than 350,000 yuan ($53,800) won't be el­i­gi­ble for gov­ern­ment sub­si­dies un­der the pro­posal. The plan is still be­ing re­viewed by var­i­ous min­istries and has to be ap­proved by the State Coun­cil, or cab­i­net, the peo­ple said.

The plan, if ap­proved in its cur­rent form, may damp de­mand elec­tric ve­hi­cle sales, which surged more than three­fold last year to 331,000 units. China has en­cour­aged con­sumers to switch from fos­sil-fuel burn­ing au­to­mo­biles to emis­sion-free elec­tric cars and gaso­line-elec­tric hy­brids with the dual aim of mit­i­gat­ing tailpipe pol­lu­tion and to push its car­mak­ers to­ward what it sees as the dom­i­nant au­to­mo­tive tech­nol­ogy of the fu­ture.

BYD Co., the War­ren Buf­fett-backed elec­tric car and bus maker, fell 0.7 per­cent to HK$44.35 as of 9:51 a.m., buck­ing a 1.4 per­cent gain in the bench­mark Hang Seng Index. Chair­man Wang Chuanfu had pre­dicted on Tues­day that the com­pany may boost de­liv­er­ies of elec­tric ve­hi­cles by as much as three times this year in its home mar­ket. Dongfeng Mo­tor Group Co., a Chi­nese com­mer­cial ve­hi­cle man­u­fac­turer, fell 1.4 per­cent af­ter re­port­ing full-year profit that missed an­a­lyst es­ti­mates. The Min­istry of In­dus­try and In­for­ma­tion Tech­nol­ogy didn't im­me­di­ately re­spond to a faxed re­quest for com­ment on the plan.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.