(Yicai Global) May 26 -- China launched more than 30 new energy vehicle projects between January 2015 and March 2016 with intended investment totaling in excess of CNY100 billion (USD15.25 billion).
Boosted by central and local government subsidies, the plug-in vehicle industry is awash with cash.
However, in March the government launched an investigation into fraudulent claims for state subsidies, the results of which are expected to be published in June.
One of the most outrageous cases of fraud came to light in April. Zhengzhou-based China Harmony New Energy Auto Holding Ltd. [HKG:3836] is accused of swindling CNY300 million (USD45.73 million) from the local government to develop an NEV project, but subsequently failed to produce a single vehicle.
Chinese companies have to-date developed 218 models of plug-in vehicles, eight times the total number of NEV models produced in the rest of the world. 500,000 NEVs were sold in China last year.