Gasgoo.com (Shanghai May 24) - Rumors that subsidy policies for energy efficient vehicles may be phased out has been causing a stir across the industry. Although the news is lacking any official confirmation as of yet, several dealers have already started researching ways to minimize potential sales losses.
The Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Finance signed an agreement putting 4 million yuan ($616,077) supporting subsidies for new energy vehicle purchases last June. According to reports, more than half of those funds were used up in the period between June 2010 and January 2011.
However, some in the industry believe that, due to their positive effect on the economy, the policies cannot easily be faded out. Regardless, many dealers are advertising the early withdrawal of the policies to help stimulate sales in the short-term.
