China will end subsidies for electric and hybrid cars at the end of the year, authorities have announced, saying the strength of sales in the sector meant state support was no longer needed.

In a statement published Friday, the Ministry of Finance said purchase subsidies would be reduced by 30 percent from the beginning of 2022 before being scrapped completely by the end of the year.

"Given the growth of the industry for vehicles with new energy, the sales trends and the smooth transition of manufacturers, the subsidies... will end on December 31," the ministry said.

"Vehicles registered after December 31, 2022 will not be subsidised."

Sales of electric and hybrid cars have boomed in China, with increases of more than 100 percent year-on-year in recent months.

The cars are set to represent 18 percent of all vehicle sales in 2022, the China Association of Automobile Manufacturers (CAAM) estimated last week. In 2019, they accounted for only five percent.

Of the 27.5 million vehicles set to be sold this year, according to CAAM, five million will be electric and hybrids.

Overall growth in the world's largest market for vehicles will likely come in at 3.1 percent for 2021, according to CAAM -- the first year of sales growth since 2018.

China, the world's largest polluter, has set ambitious goals for the widespread adoption of electric and hybrid vehicles, and aims to have the majority of cars powered with clean energy by 2035.

Related Links
Car Technology at SpaceMart.com

Tweet

Thanks for being here; We need your help. The Space Media Network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceMediaNetwork Contributor $5 Billed Once credit card or paypal		SpaceMediaNetwork Monthly Supporter $5 Billed Monthly paypal only

'Opt for cycling': French car ads must back alternatives
Paris (AFP) Dec 31, 2021
Car advertisements in France will have to include messages encouraging people to consider less-polluting travel alternatives from 2022 as part of the government's drive to rein in CO2 emissions. The requirement, set to come into force in March, was confirmed in the government's Official Journal this week after years of lobbying from environmental groups - many of which seek an outright ban on automobile ads. Similar to mandatory reminders to eat healthy on food and drink ads, the standardised m ... read more