More Great News For Tesla China — MIIT Minister States No Cut In EV Subsidies In July
Credit to Author: Paul Fosse| Date: Sun, 12 Jan 2020 00:53:34 +0000
Published on January 11th, 2020 | by Paul Fosse
January 11th, 2020 by Paul Fosse
China will not cut new energy vehicle subsidies in July, minister says https://t.co/aEHkgvKQrA pic.twitter.com/5memLSIN5f
— Reuters (@Reuters) January 11, 2020
Overnight, Miao Wei, the Minister of Industry and Information Technology in China, announced at the EV100 forum in Beijing that new energy vehicle (NEV) subsidies will not be cut in July 2020, as many in the industry had feared.
Since full year sales of NEV vehicles fell from 1.3 million in 2018 to 1.2 million in 2019, it is thought that cutting back the subsidies again in 2020 would hurt the goal of accelerating the transition from gas cars to EV’s.
Screenshot of CGTN
In July 2019, the Chinese government cut the subsidy for NEV vehicles from 50,000 yuan (about $7,200) to 25,000 yuan (about $3,600) for cars with over 400 kilometers of range (about 250 miles). In addition to the federal subsidy, there are several other incentives to buying an EV.
This news will help ensure demand and pricing will be very strong in China in 2020, and so far, the Tesla Gigafactory 3 in Shanghai has an unbelievable record of construction and ramping of production to 1,000 cars a week with a demonstrated ability to build at a 3,000 a week rate. So, both demand and supply look to be strong for Model 3 and presumably also Model Y once it’s ready. Initially, only Model Ys imported from Fremont are available to order in China, at prices considerably higher than both the US and the Made-In-China Model 3. When Model Y is made locally in China, it is expected that the price will be significantly lower thanks to lower shipping costs, lower manufacturing costs, and possibly better incentives.
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Paul Fosse A Software engineer for over 30 years, first developing EDI software, then developing data warehouse systems. Along the way, I’ve also had the chance to help start a software consulting firm and do portfolio management. In 2010, I took an interest in electric cars because gas was getting expensive. In 2015, I started reading CleanTechnica and took an interest in solar, mainly because it was a threat to my oil and gas investments. Follow me on Twitter @atj721 Tesla investor. Tesla referral code: https://ts.la/paul92237