Government to Overhaul Electric Vehicle Subsidy System: Will Local Government Burdens Ease?

[Economy 365]

The government is conducting a comprehensive review of the electric vehicle purchase subsidy system.

EV subsidies are divided into national funds covered by the government and local funds covered by local governments. Currently, local governments are required to cover at least 30 percent or more of the national subsidy using local funds.

As EV sales rapidly increase, local governments are facing growing financial burdens, with subsidies running out in some regions.

In the first half of this year, newly registered electric vehicles totaled 198,509, a 113.6 percent increase compared to the same period last year.

The proportion of EVs among newly registered cars in the first half also reached 23.3 percent.

The government is reportedly pushing to expand the volume of subsidized vehicles next year.

The Ministry of Climate, Energy and Environment plans to examine whether the 30 percent or higher local funding requirement is appropriate and to reevaluate the subsidy unit prices by vehicle type.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.