Notice on further improving the financial subsidy policy for the promotion and application of new energy vehicles

Notice on further improving the financial subsidy policy for the promotion and application of new energy vehicles
Cai Jian [2020] No.593

All provinces, autonomous regions, municipalities directly under the central government, the finance department (bureau), the competent department of industry and information technology, the science and technology department (bureau, science and technology commission), and the development and Reform Commission:

In order to support the high-quality development of the new energy vehicle industry and do a good job in the promotion and application of new energy vehicles, the relevant matters concerning the financial subsidy policy for the promotion and application of new energy vehicles are hereby notified as follows:

First, adhere to the gradual subsidy and slope retreat, and maintain the stability of technical indicators.

In order to create a stable policy environment, the framework and threshold requirements of the current technical index system for purchase subsidies will remain unchanged in 2021. According to the Notice of the Development and Reform Commission of the Ministry of Industry and Information Technology of the Ministry of Finance on Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles (Caijian [2020] No.86), in 2021, the subsidy standard for new energy vehicles will be reduced by 20% on the basis of 2020; In order to promote the electrification of vehicles in public transportation and other fields, the subsidy standard for vehicles that meet the requirements in urban public transport, road passenger transport, rental (including online car rental), sanitation, urban logistics and distribution, postal express delivery, civil aviation airports and official fields of party and government organs will be 10% on the basis of 2020. In order to accelerate the transformation and upgrading of the public transport industry, local governments can continue to give subsidies for the purchase of new energy buses.

Second, do a good job in switching and connecting test conditions to achieve a smooth transition between new and old standards.

In 2021, China’s new energy vehicle test method standards will be updated. Before the promulgation and implementation of the new standards, products tested according to the old standards can enjoy subsidies as long as they meet the technical threshold requirements of subsidy policies. The subsidy technical requirements of plug-in hybrid electric vehicle (including extended range) under the new test method standard, the conditional equivalent all-electric driving range should be not less than 43 kilometers; The fuel consumption (excluding the fuel consumption of electric energy conversion) of the electric power retention mode test should be less than 65% compared with the fuel consumption limit of the corresponding vehicle in the Limits of Fuel Consumption for Passenger Cars (GB 19578), and the electric power consumption of the electric power consumption mode test should be less than 125% of the target value of the electric power consumption of pure electric passenger cars with the same kerb quality. The technical requirements of other new energy vehicles under the new test method standards shall be governed by document No.86 [2020] of Caijian.

Third, further strengthen supervision and management and improve the long-term market-oriented mechanism.

Implement the main responsibility of product quality of new energy vehicle manufacturers, and encourage enterprises to actively carry out defect investigation and take the initiative to recall. If the safety management system of the production enterprise is not in place, causing a major accident and being punished by the competent department, if the product is not voluntarily recalled knowing that there are quality problems, causing a major accident, or if it is ordered by the competent department to recall, depending on the degree, measures such as suspension or cancellation of the recommended vehicle catalogue, suspension or cancellation of financial subsidies will be taken. Promote the establishment of an inter-departmental information sharing and supervision mechanism, strengthen the supervision of the whole process of production, sales, operation and scrapping of new energy vehicles, and conduct inter-departmental joint investigations on fires and major safety accidents. Further strengthen the audit of purchase subsidies and increase the proportion of on-site audits of key enterprises. We will implement and improve the integral trading policy for new energy passenger cars, accelerate the research on the integral trading system for new energy commercial vehicles, undertake the orderly withdrawal of purchase subsidies, and promote the market-oriented development of the new energy automobile industry.

Fourth, effectively prevent redundant construction and promote the improvement of industrial concentration

Strengthen the management of automobile investment projects and production access, strictly control the increment, optimize the stock, and strictly implement the regulatory requirements such as new enterprises and capacity expansion projects. Increase the withdrawal of zombie enterprises, encourage superior enterprises to merge and reorganize, become bigger and stronger, resolutely curb the chaos of blind investment and illegal construction of new energy vehicles, and promote the industry to gather in areas and enterprises with full capacity utilization, solid industrial foundation, perfect supporting system and obvious competitive advantages, and continuously improve the capacity utilization rate and industrial concentration. The number of new energy passenger cars and commercial vehicle enterprises applying for purchasing subsidies and clearing vehicles at a time should reach 10,000 and 1,000 respectively.

This notice shall be implemented as of January 1, 2021. Matters not specified in this notice, Continue to follow the Notice on Matters Related to the Approval Responsibility for the Promotion and Application of New Energy Vehicles (Cai Jian [2016] No.877), Notice on Adjusting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles (Cai Jian [2016] No.958), Notice on Adjusting and Perfecting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles (Cai Jian [2018] No.18), Relevant documents such as Notice on Further Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles (Cai Jian [2019] No.138), Notice on Supporting the Promotion and Application of New Energy Buses (Cai Jian [2019] No.213) and Notice on Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles (Cai Jian [2020] No.86) were implemented.

Ministry of Finance, Ministry of Industry and Information Technology, Ministry of Science and Technology Development and Reform Commission
December 31, 2020

Attachment download:

New energy vehicle promotion subsidy scheme in 2021. docx