China Association of Automobile Manufacturers reveals subsidies on alternative energy vehicles will face multiple adjustments in the next year

China Association of Automobile Manufacturers reveals subsidies on alternative energy vehicles will face multiple adjustments in the next year

On November 10th, CAAM held a press conference on the monthly production and sales data. Ye Shengji, Vice General Secretary of CAAM reveals on the conference that the details of subsidiary on alternative energy vehicles will face multiple adjustments in the next year, while this year’s data will undoubtedly be affected.

Data shows that alternative energy vehicles have production and sales volumes of 49,000 and 44,000 units respectively in October, increasing 15.1% and 0.9%. Currently, the number in October is the highest among the year but has not achieved any breakthrough.

Till now, no detailed plan on the subsidiary policy for alternative energy vehicles has been published. Previously, Yang Yusheng, Academician of Chinese Academy of Engineering reveals that the Ministry of Finance will make a public speech. Some industrial experts analyze that it may predict the falling back of subsidiary policy.

Ye Shengji said that, “It can be predicted that the late come of policy will influence this year’s data.” Ye revealed that the nation is always researching relevant policy on subsidiary, the focus of which is how to promote the industrialization process of alternative energy vehicles in a scientific and rational way.

“The adjusting policy can be introduced this year, but details may be released in the next year.” Ye said. Ye believed that although the policy may come late, but the great influence it brings needs more consideration.

Apart from the subsidiary policy, whether the halving purchasing tax policy for small displacement vehicles will be continued is also the focus of attention. Statistical data shows those vehicles with displacement no larger than 1.6L sell 1,713,000 units in October, increasing 28.1% with the same period of last year and 7.8 percentage points higher than the overall passenger market, and accounting for 73.1% of the total passenger vehicle sales volume. Their sales volume reaches 13.75m units from January to October, increasing 22.8% and accounting for 72% of the total passenger market, which is 4.1 percentage points higher than the same period of last year.  Small-displacement vehicles account for a large proportion of the market share. “If the policy meets end in the next year, great impacts will be brought to the market.” Ye said.

He reveals that relevant departments are researching the policy and conduct systematic evaluation to the effects of policy results. “CAAM hopes the policy will keep continuing. But the final result will be decided by the State Council, but there are great probabilities that the policy will continue.”