China is to end subsidies for electric and hybrid vehicles at the end of the year, authorities have announced, saying the strength of sales in the sector meant state support was no longer needed.
Purchase subsidies would be reduced by 30 percent from the beginning of this year before being scrapped completely by the end of the year, the Chinese Ministry of Finance said in a statement on Friday.
“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 subsidized.”
Photo: Reuters
Sales of electric and hybrid vehicles have boomed in China, with annual increases of more than 100 percent in the past few months.
The vehicles are set to represent 18 percent of all vehicle sales this year, the China Association of Automobile Manufacturers (CAAM) estimated last week.
In 2019, they accounted for only 5 percent.
Of the 27.5 million vehicles set to be sold this year, 5 million would be electric and hybrids, CAAM said.
Overall growth in the world’s largest market for vehicles would likely come in at 3.1 percent for last year — the first year of sales growth since 2018, the association said.
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 vehicles powered with clean energy by 2035.
NEW IDENTITY: Known for its software, India has expanded into hardware, with its semiconductor industry growing from US$38bn in 2023 to US$45bn to US$50bn India on Saturday inaugurated its first semiconductor assembly and test facility, a milestone in the government’s push to reduce dependence on foreign chipmakers and stake a claim in a sector dominated by China. Indian Prime Minister Narendra Modi opened US firm Micron Technology Inc’s semiconductor assembly, test and packaging unit in his home state of Gujarat, hailing the “dawn of a new era” for India’s technology ambitions. “When young Indians look back in the future, they will see this decade as the turning point in our tech future,” Modi told the event, which was broadcast on his YouTube channel. The plant would convert
Nanya Technology Corp (南亞科技) yesterday said the DRAM supply crunch could extend through 2028, as the artificial intelligence (AI) boom has led the world’s major memory makers to dramatically reduce production of standard DRAM and allocate a significant portion of their capacity for high-bandwidth memory (HBM) chips. The most severe supply constraints would stretch to the first half of next year due to “very limited” increases in new DRAM capacity worldwide, Nanya Technology president Lee Pei-ing (李培瑛) told a news briefing. The company plans to increase monthly 12-inch wafer capacity to 20,000 in the first half of 2028 after a
Property transactions in the nation’s six special municipalities plunged last month, as a lengthy Lunar New Year holiday combined with ongoing credit tightening dampened housing market activity, data compiled by local land administration offices released on Monday showed. The six cities recorded a total of 10,480 property transfers last month, down 42.5 percent from January and marking the second-lowest monthly level on record, the data showed. “The sharp drop largely reflected seasonal factors and tighter credit conditions,” Evertrust Rehouse Co (永慶房屋) deputy research manager Chen Chin-ping (陳金萍) said. The nine-day Lunar New Year holiday fell in February this year, reducing
Zimbabwe’s ban on raw lithium exports is forcing Chinese miners to rethink their strategy, speeding up plans to process the metal locally instead of shipping it to China’s vast rechargeable battery industry. The country is Africa’s largest lithium producer and has one of the world’s largest reserves, according to the US Geological Survey (USGS). Zimbabwe already banned the export of lithium ore in 2022 and last year announced it would halt exports of lithium concentrates from January next year. However, on Wednesday it imposed the ban with immediate effect, leaving unclear what the lithium mining sector would do in the
RSS