China reassessing EV subsidies

China has lowered manufacturer subsidies for many electric cars and plug-in hybrids by about 30%.

So says the Nikkei Asia Review, reporting that China’s central government is planning to re-evaluate this aid again around midyear.

Grants to automakers have dropped from 36,000 yuan to about 24,000 yuan for each electric car with the typical 200-250km range.

The minimum range to qualify for subsidies rose from 100km to 150km per charge.

The grant changes last through to June 11. The government will re-examine the subsidies after assessing sales. Local governments are also likely will lower their subsidies to car makers.

Overseas media report than many businesses abused the subsidy, another aspect China is cracking down on.

Meanwhile, LiveMint

reports Tesla is struggling to complete a deal to open a factory in China.

It says that more than seven months after Tesla publicised it was working with Shanghai’s government to explore assembling cars, an agreement hasn’t been finalised because of disagreements on the factory ownership structure.