Abstract:

The Notice is the 2020 annual adjustment to China’s decade-long national subsidy program for NEVs. The Notice basically follows the overall design of the policy described in the previous policy update published in June 2019, but there are five major changes: 

• Subsidies are extended for two years, from the end of 2020 to the end of 2022  
• The technical criteria for qualification are tightened  
• The subsidy size is phased-down  
• For the first time, vehicle price and sales limits are introduced  
• Subsidies for FCVs are replaced by dedicated promotion packages 

This policy update describes a special provision regarding how the 2019 and 2020 policies connect during the transition period.