On March 26th, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology and the Development and Reform Commission jointly issued the Notice on Further Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles, so as to promote the survival of the fittest in the industry and prevent the market from ups and downs.

  According to official website of the Ministry of Finance, with the rapid expansion of the scale of the new energy automobile industry, some new situations and new problems have emerged in the process of industrial development: First, the long-term implementation of the subsidy policy has led to the formation of "subsidy dependence" in some enterprises, and the industrial competitiveness is not strong; Second, the consumption application environment still needs to be improved. In some places, insufficient investment in the use link and imperfect supporting infrastructure such as charging have become the key factors restricting industrial development; Third, local protection still exists, which is not conducive to the formation of a unified and fair competitive environment and to promoting the industry to become bigger and stronger; Fourth, with the rapid growth of vehicle ownership and the increasing frequency of vehicle use, the safety risk of new energy vehicle products increases, so it is urgent to strengthen safety supervision to ensure the safe development of the industry.

  The new subsidy policy will have

  Three-month transition period

  In the process of adjusting and improving the subsidy policy for new energy vehicles, relevant departments have conducted comprehensive and in-depth research and analysis on the product technology and cost of mainstream enterprises at home and abroad, and the policy adjustment plan has been further revised and improved after soliciting opinions from industry experts and enterprises.

  This notice will be implemented from March 26, 2019. Considering the cycle of technological transformation and upgrading of new energy vehicles, it will take some time to digest the inventory products. In order to avoid having a big impact on the production and sales of enterprises, we will continue to set up a policy transition period. During the transition period, the subsidy standard will be appropriately reduced.

  During the transition period from March 26, 2019 to June 25, 2019, vehicles that meet the requirements of technical indicators in 2018 but do not meet the requirements of technical indicators in 2019 will be subsidized by 0.1 times of the corresponding standard in accordance with the Notice of the Development and Reform Commission of the Ministry of Science and Technology of the Ministry of Finance on Adjusting and Perfecting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles (Cai Jian [2018] No.18), which meets the requirements of technical indicators in 2019. During the transition period, the fuel cell vehicles sold on the brand will be subsidized by 0.8 times of the corresponding standard in 2018 (the subsidy policy for fuel cell vehicles and new energy buses will be announced separately).

  Raise the threshold of driving range for electric passenger cars.

  Increase the intensity of slope retreat

  The notice is clear, optimize technical indicators, and adhere to the principle of "supporting the excellent and supporting the strong". In accordance with the principles of advanced technology, reliable quality and guaranteed safety, the threshold of technical indicators will be appropriately raised to prevent enterprises from blindly pursuing high indicators and neglecting safety, and to promote accelerated technological progress. At the same time, the current subsidy index system will be further simplified to provide a more relaxed policy environment for enterprises to develop products. Mainly: steadily increase the threshold requirement of energy density of power battery system of new energy vehicles, moderately increase the energy consumption requirement of new energy vehicles, and increase the threshold requirement of driving range of pure electric passenger cars.

  The reporter noted that according to the newly announced subsidy scheme for the promotion of new energy vehicles and the technical requirements of products, the driving range threshold of pure electric passenger cars that can enjoy subsidies has been raised to 250 kilometers, while the driving range threshold was 150 kilometers last year. Specifically, a pure electric new energy passenger car with a driving range of 250 km to 400 km can enjoy a subsidy of 18,000 yuan; Pure electric new energy passenger cars with a driving range of more than 400 kilometers can enjoy a subsidy of 25,000 yuan.

  According to the institutional arrangement of subsidy withdrawal after 2020, in order to make the new energy automobile industry transition smoothly, the method of releasing the adjustment pressure in stages is adopted, that is, the subsidy standard in 2019 will be reduced by 50% on average on the basis of 2018, and the slope will be in place by the end of 2020. This proportion of slope retreat is basically suitable for the current proportion of overall vehicle cost reduction.

  After meeting the mileage requirements

  You can apply for liquidation according to the procedure.

  According to the current policy, operating vehicles must meet the mileage of 20,000 kilometers when applying for subsidy liquidation. Some enterprises report that the liquidation time is long and the capital occupation pressure is high. In order to alleviate the financial pressure of enterprises, starting from 2019, some funds will be pre-allocated for vehicles with operating mileage requirements after they are sold and licensed, and they can apply for liquidation according to procedures after meeting the mileage requirements. After the release of the policy, vehicles that have been sold with operating mileage requirements will not be subsidized if they do not meet 20,000 kilometers within 2 years from the date of registration, and the pre-allocated funds will be deducted at the time of liquidation.

  In terms of strengthening quality supervision and ensuring vehicle safety, the notice also requires that safety and consistency supervision be further strengthened, and the industry authorities should speed up the establishment of a normal mechanism for product safety monitoring and "consistency" sampling inspection. For vehicles that have caused major safety accidents due to product quality, or have been identified by relevant departments as having major quality defects, the catalogue of recommended vehicles shall be suspended or cancelled, and financial subsidies shall be suspended or cancelled accordingly.

  Create a fair environment

  Cancel local car purchase subsidies

  Non-subsidy measures introduced by local authorities, such as unlimited purchase, free purchase restriction and licensing convenience, have played an important role in expanding the consumption of new energy vehicles. In view of the fact that the above measures are linked to the recommended vehicle catalogue in some places, in order to encourage the consumption of new energy vehicles, the notice requires that from 2019, the vehicle products that meet the requirements of the announcement but do not meet the technical conditions for subsidies in 2019 will also be included in the recommended vehicle catalogue. Local governments should improve their policies. After the transition period, they will no longer give purchase subsidies to new energy vehicles (except new energy buses and fuel cell vehicles), and instead use them to support the "short board" construction of charging (hydrogenation) infrastructure and supporting operational services. If the local government continues to grant purchase subsidies, the central government will deduct the relevant financial subsidies accordingly.

  At the same time, the notice proposes to establish a punishment mechanism, break local protection, supervision and management, etc., and other relevant regulations will continue to be implemented in accordance with relevant documents.

  Text/reporter Ren Xiaoyuan Wu Pengliang

  Coordinator/Photo courtesy of Yu Meiying/vision china

  Subsidy standard for new energy vehicles

  Pure electric passenger car

  Driving range is 250km &le; R < 400km

  Subsidy 18,000 yuan

  Driving range R&ge; 400 kilometers

  Subsidy 25,000 yuan

  Plug-in hybrid passenger car (including extended range)

  Subsidy 10,000 yuan

  New energy truck

  The maximum subsidy for bicycles from the central government is 55,000 yuan.

  New energy bus

  The maximum subsidy for bicycles from the central government is 90,000 yuan.