(Yicai Global) Dec. 21 -- Previous cheating to obtain subsidies for new-energy vehicles (NEVs) has prompted the Chinese Government to start tightening subsidy policies.
A statement today by the Ministry of Industry and Information Technology (MIIT) says the ministry and other departments in charge of the popularization of NEVs -- including the Ministry of Finance -- are to adjust NEV subsidy policies to reinforce their supervision, and to further consummate the policy environment for the development of this industry. They will set upper limits for subsidies from the central government and local governments to forestall inclusion of excessive subsidies in local governments' supporting policies. They will also optimize methods of appropriating these subsidies, i.e. after 2016, the subsidy for the purchase of an NEV will be paid via post-event settlement, rather than before-purchase appropriation. They will also reinforce the examination of applications for subsidies by each local government, and further conduct inspections of the popularization of NEVs.
Last night, the MIIT delivered four administrative penalty notices to five NEV enterprises unmasked as subsidy cheats, including Henan Shaolin Bus Co., Shenzhen Wuzhoulong Motor Ltd., King-Long United Automotive Industry (Suzhou) Co. and Chery & Wanda Guizhou Bus Co. These five were ordered to cease production and marketing of problematic models. Their applications to qualify for listing in the catalog of recommended NEVs were also suspended. They were further ordered to discharge their rectification obligations within six months.