Fuel subsidies will still be available in 2021, but they will be gradually reduced. The related expenditures will no longer be linked to fuel consumption or oil prices. Below are the relevant policies for the 2020 national subsidies for new energy vehicles: 1. More gradual reduction in subsidies: The subsidy standards for 2020-2022 will be reduced by 10%/20%/30% respectively compared to the previous year, with reductions of 0%/10%/20% in the public transportation sector. For passenger vehicles, pure electric models will see a 10% reduction in 2020, while plug-in hybrid models will see a 15% reduction. 2. A three-month transition period is set: From April 23, 2020, to July 22, 2020. During the transition period, vehicles that meet the 2019 standards but not the 2020 standards will receive a subsidy of 0.5 times the 2019 standard, while vehicles that meet the 2020 technical standards will receive subsidies according to the 2020 standards. 3. A price threshold of 300,000 yuan is set (vehicles with "battery swap mode" are exempt from this regulation): The new subsidy policy stipulates that the pre-subsidy price of new energy passenger vehicles must be below 300,000 yuan (inclusive), and the price limit for subsidized vehicles will take effect after the transition period. 4. Fuel cell vehicles: Subsidies will shift from nationwide purchase subsidies to regional demonstration development, moving from broad management to focused efforts. Fuel cell vehicles are also one of the policy-supported routes. By the end of 2019, China had promoted over 6,500 fuel cell vehicles and built more than 50 hydrogen refueling stations. 5. The minimum driving range continues to increase: For pure electric passenger vehicles, the minimum driving range for subsidies in 2020 was increased from 250 km to 300 km. 6. The annual subsidy cap is set at 2 million vehicles.
