(Yicai Global) Aug. 22 -- China's generous subsidy policy for plug-in vehicles is to get tougher, as the government cracks down on an increasing number of fraudulent claims.
"Indiscriminate financial subsidies have encouraged excessive reliance among firms. Automakers lacking the latest technology and market recognition will be disqualified from getting government subsidies," Ms. Song Qiuling, deputy director of the economic development division of the Ministry of Finance, commented yesterday.
The Ministry of Finance is committed to setting up an online regulation platform that will acquire real-time information about NEV production, sales, operation safety and charging facilities. "Our subsidy policies will be adapted accordingly, and it will be difficult for any company to cheat on subsidies going forward," added Ms. Song.
China sold 350,000 plug-in vehicles last year, becoming the world's largest new energy vehicle market. However, this achievement is largely seen as a result of government support, and not as a result of innovation in the industry.
There have been many fraudulent claims for state subsidies. One of the most outrageous cases came to light in April. Zhengzhou-based China Harmony New Energy Auto Holding Ltd. [HKG:3836] is accused of swindling CNY300 million (USD44.96 million) from the local government to develop an NEV project, but has failed to produce a single vehicle.