It is reported that under the background that the four ministries and commissions (Ministry of Industry and Information Technology, Development and Reform Commission, Ministry of Finance and Ministry of Science and Technology) have been investigating the development status of new energy vehicles in various pilot cities, the new subsidy policy for domestic new energy vehicles has been formulated and is expected to be formally introduced in the near future. Among them, the policy of unifying subsidies everywhere has become the biggest bright spot.
According to Zhang Jie, the president of the China Investment Association’s Energy Development Research Institute, Zhang Jie publicly disclosed that the new policy will no longer require subsidy from local governments. Instead, the central government will uniformly distribute subsidy funds; the original subsidy will only be used for pilot cities and the new policy will be extended to the whole country. And the standard is unified.
Zhang Xiaoyao, executive vice president of the China Federation of Machinery Industry, told the media recently: “The current news is that the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology are still very active. The key depends on the balance of funds of the Ministry of Finance because it is not a decimal. It may involve several tens of billions."
As one of the means for the country to control air pollution, new energy vehicles are the target of current car companies, but the government-led new energy subsidy policy has expired last year, and the government needs to formulate new subsidy policies. According to the new energy subsidy pilot policy implemented between 2009 and 2012, the state provides subsidies for new energy vehicles, and local governments subsidize them by 1:1. The pilot policy was initially piloted in 5 major cities and expanded to 25 pilot cities in 2010. After the subsidy policy expired at the end of last year, subsidies for the New Deal have been delayed.
Due to the breakdown of subsidies, in the first eight months of this year, domestic sales of new energy vehicles were not satisfactory, and in some places there was a situation where manufacturers were subsidized. According to incomplete statistics from China Association of Automobile Manufacturers, in the first half of 2013, only 5,889 new energy vehicles were sold nationwide, most of which were used in the public domain, and private consumption was minimal.
The new version of the subsidy policy has four major highlights: the subsidy will be based on vehicle power and will no longer be classified as if it were the original model; the new subsidy policy will continue into 2015, and the continuously determined policy will be crucial to the development of emerging industries. The new policy will no longer mandate the subsidy of local governments. Instead, the central government will uniformly distribute subsidy funds; the original subsidy will only be targeted at pilot cities, and the new policy will be extended to the whole country and the standards will be unified.
In the eyes of the investment industry, the introduction of the New Deal is expected to significantly stimulate the sales of new energy vehicles. Excluding the impact of the new energy auto industry, the subsidy New Deal, especially the nationwide sales subsidy policy, will significantly increase the market competitiveness of new energy vehicles. Comparing the sluggish sales of new energy vehicles in the previous eight months, the new government may have sales blowouts after its introduction.
According to data from the China Automobile Association, only 12,791 new energy vehicles (11,375 pure electric vehicles and 1,416 hybrid electric vehicles) were sold in China in 2012, and China’s 2015 target is 500,000.
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