What does the phase-out of new energy vehicle subsidies mean?
2 Answers
New energy vehicle subsidy phase-out means reducing the previous subsidy policies and no longer providing substantial new energy vehicle subsidies. In other words, new energy vehicles will no longer enjoy such high subsidy prices, and the final price for car owners will increase. Reasons for new energy vehicle subsidies: To support the development of the new energy vehicle industry, the government has established new energy vehicle subsidy policies to encourage consumers to purchase new energy vehicles. Introduction to new energy vehicles: Refers to vehicles that use unconventional vehicle fuels as power sources (or use conventional vehicle fuels with new onboard power devices), integrating advanced technologies in vehicle power control and driving systems, resulting in advanced technical principles, new technologies, and new structures. New energy vehicles include four major types: hybrid electric vehicles (HEV), battery electric vehicles (BEV, including solar-powered vehicles), fuel cell electric vehicles (FCEV), and other new energy (such as supercapacitors, flywheels, and other high-efficiency energy storage devices) vehicles.
The phase-out of new energy vehicle subsidies simply means the government gradually reduces subsidies for purchasing new energy vehicles. I remember around 2020, the national subsidies were still substantial, saving buyers tens of thousands of yuan per vehicle. Now, the subsidy amounts are being reduced annually. The main purpose of this policy is to encourage automakers to rely less on subsidies and improve their own competitiveness. As consumers, we can feel the difference—previously, we saved more money when buying electric vehicles, but now we have to spend more. However, from another perspective, the subsidy phase-out forces automakers to enhance their technology. In recent years, there have been significant improvements in battery range and faster charging speeds. If subsidies were completely canceled, automakers might engage in price wars, which could actually benefit consumers.
