BYD Denies Defrauding Government Over Subsidies for New Energy Cars
Yicai Global
/SOURCE : Yicai
BYD Denies Defrauding Government Over Subsidies for New Energy Cars

(CBN - Global) May 17 -- BYD Auto Co. [SHE:002594] appears not to be caught up in a keenly-watched series of fraud scandals involving national subsidies, an unnamed insider at China's leading maker of new energy vehicles told CBN.

Shaanxi Daily also reported that BYD's new energy vehicle factory in the northwestern province of Shaanxi has not defrauded the government of subsidies, according to a joint investigation by the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Science and Technology, and the National Development and Reform Commission.

A BYD dealer in Nanjing committed suicide on March 9 after alleging that he and other staff members defrauded authorities over subsidies for green vehicles, leading to widespread reports that the automaker built its new energy transport empire by defrauding the government over national grants. China has long heavily subsidized alternative energy vehicles.

China overtook the US in new energy car sales last year, taking the top spot globally. Last year, new energy car production hit 340,500 vehicles and sales reached 331,100, data from the China Association of Automobile Manufacturers show.

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