China is applying a new subsidy policy for purchases of new energy vehicles as of June 12, aimed at favoring vehicles with longer operating ranges, as announced by the Chinese Ministry of Finance. According to the new policy, subsidies will be reduced by 20-50 percent for pure electric passenger cars with an operating range of 150-300 km, will be cancelled for those will a range of less than 150 km, and will be increased by 14-32 percent for pure electric passenger cars with a range of over 300 km.
According to the latest data issued by the China Association of Automobile Manufacturers (CAAM), in May this year new energy vehicles sales amounted to 102,000 units, up 125.6 percent year on year, while new energy vehicles sales totaled 328,000 units in January-May period of the year, rising by 141.6 percent year on year.