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On September 17, 2013, the Ministry of Industry and Information Technology released the "Notice on Continuing the Promotion and Application of New Energy Vehicles" issued by the Ministry of Finance, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, and the four ministries and commissions of the National Development and Reform Commission (hereinafter referred to as the "Notice"). The industry hopes that The long-term new energy vehicle subsidy policy has finally settled and highlighted ten highlights.
Highlight 1: Expand the pilot area
The "Notice" added some pilot cities on the basis of the 25 cities that originally implemented the "Ten Thousand Cities" project. At the same time, pilot areas will be built with the pilot cities as the core, covering the surrounding cities, forming a whole area of ​​demonstration and promotion of energy-saving and new energy vehicles, and expanding the scope of radiation. In the pilot cities and regions, new energy vehicles will receive dual subsidies from the central government and local finances.
Highlight 2: Increased promotion goals
The "Notice" proposed that from 2013 to 2015, the cumulative number of new energy vehicles in the mega-sized cities or key regions participating in the promotion should not be less than 10,000 units, and that in other cities or regions should not be less than 5,000. In addition, this promotion does not use a single city as a promotion unit, and can activate the sharing of new energy vehicles and infrastructure in the city circle. There are no quantitative restrictions on the cities and regions to be promoted. They should be determined flexibly with the conditions of the declared cities and regions.
Highlight 3: Promoting Urban Elimination Mechanism
The previous pilot policies for the promotion of new energy vehicles and the private purchase of new energy vehicles, despite requiring the pilot cities to set targets, have no penalties. In the 25 "Ten Thousand Cities" pilot cities, some cities only had more than 100 new energy vehicles to promote at the end of the pilot, far less than the target. The “Notice†stipulates that the relevant cities must be subject to annual assessments, and those that fail to complete the annual promotion goals will be eliminated.
Highlight 4: Central Financial Direct Car Company
Previously, the new energy vehicle promotion subsidies were issued by the government where the vehicle sales activities took place. This move has caused local car companies to face the concerns of the subsidy declaration process when they enter pilot cities, and has also stimulated the local government to take care of local enterprises. "Notice" made it clear this time that the production companies submitted applications for pre-disbursement of subsidies to the financial and science and technology departments where the enterprises were registered. The central government allocates the subsidy funds to new energy automobile production enterprises, and implements quarterly advances and annual liquidation. This has changed the original practice of subsidizing local governments to financial subsidies, which is conducive to the entry of new energy auto companies into private consumer markets.
Highlight 5: Bus procurement leans towards new energy vehicles
The "Notice" shows that the government and bus procurement will be tilted toward new energy vehicles, and the proportion of newly added or updated public transportation, public service, logistics, and environmental sanitation vehicles will not be less than 30%. Local governments have issued specific and specific policies and measures for the purchase of new energy vehicles, bus operations, and construction of supporting facilities.
Highlight 6: Subsidy for passenger cars to see mileage
In the private subsidy policy for purchasing new energy vehicles introduced in 2010, battery pack energy is the main indicator of subsidy measurement, and passenger cars are now changed to be based on the cruising range of the car in pure electric mode. According to the new regulations, new energy passenger vehicles can receive subsidies of 35,000, 50,000 and 60,000 yuan. The adjusted policies can directly reflect the performance of new energy vehicles, help guide the research and development of car companies, and the understanding of market consumers. The subsidy of commercial vehicles is equivalent to that of passenger vehicles, which is about 10%-20% of the price of new energy vehicles.
Highlight 7: Implement the Subsidy Withdrawal Mechanism
The use of financial subsidies to promote industry progress is a last resort, and it also encourages companies to rely on subsidies. Therefore, it should clearly define the objectives and exit mechanisms. The "Notice" proposed that the subsidy policy for new energy vehicles will last from 2013 to 2015, and since 2014, the annual subsidies will gradually decrease. In 2014 and 2015, pure electric passenger cars and plug-in hybrids will be mixed. The subsidy standards for power (including extension) passenger cars, special electric vehicles, and fuel cell vehicles have dropped by 10% and 20% respectively on the basis of 2013 standards; pure electric bus and plug-in hybrid (including incremental) buses Car standards remain unchanged.
Highlight 8: New Fuel Cell Vehicle Subsidy
This subsidy policy has further increased the number of subsidized vehicles, including special vehicles for pure electric vehicles such as postal services, logistics, and sanitation. In addition, subsidies for fuel cell vehicles have also been added. However, models using hybrid vehicles such as Toyota and Honda are still not subsidized.
Highlight 9: Eradicating Local Protectionism
In response to the problems of local protection and monopoly encountered during the promotion of new energy vehicles, the “Notice†stipulates that the number of foreign brands used in the promotion and application of vehicles shall not be less than 30%. Do not set or disguise obstacles to limit the purchase of foreign brand vehicles.
Highlight 10: Subsidies for Medium-sized Pure Electric Buses
In the previous round of subsidy policies, only pure electric buses of more than 10 meters could receive subsidies. In this policy, 6- to 8-meter-metre pure electric buses can receive a subsidy of 300,000 yuan; 8 to 10 meters can get 400,000 yuan, and buses over 10 meters can still get 500,000 yuan. This is the same as the previous one. The standards of the round are the same. Medium-sized passenger vehicles have joined the ranks of subsidies and increased the choice of bus companies.
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