China's ministry of finance has already provided CNY 38.5 billion in subsidies for new energy vehicles – which also includes the settlement of subsidy funds for the promotion and application of new energy vehicles from 2016 to 2019.
According to the Notice, 25 regions including Beijing, Tianjin, Hebei, Shanxi, Liaoning and Jilin are included in the 2022 energy saving and emission reduction subsidy budget.
The notice also includes the settlement of the following subsidy funds:
2019-2020 new energy vehicle promotion and application subsidy funds.
Funds for the promotion and application of new energy vehicles for 2016-2018.
The liquidation of subsidy funds for the promotion and application of new energy vehicles in 2019.
The funds will be distributed to the provincial (regional, municipal) authorities where the new energy vehicle manufacturers are located and, after the start of the 2022 budget year, the funds will be allocated to the corresponding enterprises in accordance with procedures.
According to the 'New Energy Automobile Industry Development Plan (2021-2035),' the penetration rate of new energy vehicles will reach 20% by 2025. In August this year, the wholesale penetration rate of China's NEV manufacturers exceeded 20% for the first time.
According to data from the China Passenger Car Association, retail sales of new energy passenger cars reached 321,000 units in October, up 141.1% year-on-year. From January to October, the retail sales of new energy vehicles were 2.139 million units, up 191.9% year-on-year.