Tesla a Clear Winner as China's 2021 New Energy Vehicle Subsidies Soar 234% to RMB 37.58 Billion Year on Year

The state policy of China continues to promote the distribution of new energy cars in the country. According to China's Ministry of Finance, government subsidies for new energy vehicles (NEV) in 2021 will grow by 234% to RMB 37.585 billion year on year.

On November 20, China's Ministry of Finance released a preliminary budget for new energy vehicle subsidies for 2021, totaling more than three times the amount allocated in 2020. China is planning subsidies for new energy vehicles totaling RMB 37.585 billion in 2021, up 234% from 2020, cnTechPost reported. Almost 42% of allocations are dedicated to the operation of new energy buses. For these vehicles, the budget is 15.689 billion RMB.

In 2020, the Ministry of Finance issued subsidies for new energy vehicles in the amount of RMB 11.257 billion, including subsidies for the promotion of high-performance motor products and new energy vehicles that meet the requirements.

In addition to buses, the latest subsidies for new energy vehicles in 2021 are aimed at promoting products for new energy vehicles.

Tesla could also benefit significantly from new government subsidies. The Ministry of Industry and Information Technology of China has previously listed China-made Model 3 in the "Catalog of Recommended Models for the Promotion and Application of New Energy Vehicles." Tesla, in turn, has always strived to meet all the necessary requirements such that customers receive incentives for their vehicle purchases.

Tesla is a global leader in the electric vehicle industry with an incredibly large and growing market in China. Increasing incentives will only further boost sales.

© 2020, Eva Fox. All rights reserved.

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