How are new energy vehicles subsidized?

[JoannaLynn]

According to Article 9 of the "New Energy Vehicle Subsidy Standards", the subsidy amount is determined based on the energy capacity of the power battery pack. For eligible new energy vehicles, a subsidy of 3,000 yuan per kilowatt-hour is provided, with plug-in hybrid passenger vehicles receiving a maximum subsidy of 50,000 yuan per vehicle, and pure electric passenger vehicles receiving a maximum subsidy of 60,000 yuan per vehicle. The following is an introduction to new energy vehicles: 1. New energy vehicles refer to vehicles that use unconventional vehicle fuels as power sources, integrating advanced technologies in vehicle power control and driving systems, resulting in vehicles with advanced technical principles, new technologies, and new structures. Unconventional vehicle fuels refer to fuels other than gasoline and diesel. 2. New energy vehicles include four major types: hybrid electric vehicles, pure electric vehicles, fuel cell electric vehicles, and other new energy vehicles.

[AubreyLynn]

When I bought my new energy vehicle last year, the subsidies helped me save a lot. The national subsidy is given based on the vehicle model and range, for example, pure electric vehicles with a range of over 300 kilometers can receive several thousand to over ten thousand yuan, while plug-in hybrids get less. Additionally, the purchase tax is fully exempted, which is directly deducted at the time of purchase. Local subsidies in cities like Shanghai or Beijing offer additional benefits, and when I applied, the 4S dealership handled everything—just fill out forms and submit materials. However, the subsidy policies change every year, and I heard they might be canceled in 2024, so it’s better to buy now. Not only does it save money, but the free green license plates are super convenient in cities with license plate restrictions, and there are also subsidies for installing charging stations. I think it’s quite a good deal.

[JoyRose]

After dealing with cars for a long time, I've found that subsidy details are quite intricate. At the national level, there are purchase subsidies for new energy vehicles, with pure electric models saving up to 20,000-30,000 yuan, and plug-in hybrids receiving half that amount. The subsidy is directly deducted from the vehicle price, and the exemption from purchase tax is also quite beneficial. However, the policy is being phased out quickly—subsidies were halved in 2023 and may be completely discontinued next year. Policies vary by city; for example, Shenzhen offers larger local subsidies. Applications are processed through the seller, requiring the submission of vehicle contracts for review. In the long run, subsidies encourage technological advancement, but consumers should act quickly—buying early means enjoying discounts, while delaying may lead to price increases.

[DonovanLynn]

Subsidies play a crucial role in promoting the development of electric vehicles. The government provides subsidies based on vehicle type and range, offering more for pure electric vehicles with over 300 kilometers of range, and encouraging new battery technologies. Exemptions from purchase tax lower the barrier to entry, while local governments like Hangzhou offer support for charging station installation. The benefits include popularizing clean vehicles and saving money to boost consumption. However, the phase-out trend is evident, with subsidies potentially disappearing from 2024 onwards, shifting the future reliance to market-driven forces where technological competition becomes more important. Acting early allows one to seize the benefits.