Electric Cars Production And Sales Falls Down In China After Subsidy Scam

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The Chinese market saw a drastic decline in production and sales of the new energy vehicle production and sales figures in September.

Electric Cars Production And Sales Falls Down In China After Subsidy Scam

The reason behind this is the Chinese authority cracked on the subsidy scams. According to China Association of Automobile Manufacturers (CAAM) the market witnessed a sales growth rate of 43.8 percent in September, but this was markedly low compared to August.

Electric Cars Production And Sales Falls Down In China After Subsidy Scam

This decline in the market came after the authorities penalising five new energy car manufacturers in China in September for illegally obtaining government subsidies.

Electric Cars Production And Sales Falls Down In China After Subsidy Scam

China has been encouraging the use of alternative-fuel vehicles to upgrade the industry and to reduce environmental pollution.

Electric Cars Production And Sales Falls Down In China After Subsidy Scam

For this reason, the government has been offering tax exemptions and subsidies for the car purchases and requiring government agencies to buy more alternative fueled cars.

Electric Cars Production And Sales Falls Down In China After Subsidy Scam

Because of these perks, the number of alternative fuel vehicles sold in 2015 grew to almost three times year on year to 3,31,100.

Electric Cars Production And Sales Falls Down In China After Subsidy Scam

During the first nine months, 3,02,000 alternative fuel vehicles were produced 2,89,000 were sold. And the growth rate was 93 percent and 100.6 percent respectively.

Electric Cars Production And Sales Falls Down In China After Subsidy Scam

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Story first published: Sunday, October 23, 2016, 15:30 [IST]
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