Gone are the days of 2019, when new energy subsidy policies were introduced and subsidies were used to survive

On March 26th the high-profile 2019 new-energy subsidy policy was finally unveiled. In addition to continuing to significantly reduce the amount of subsidies and raise the threshold of subsidies, the cancellation of local subsidies has been confirmed in the latest subsidy policy. However, the New Deal has set aside a three-month buffer period for local subsidies, which will be completely eliminated on 25 June. 1. Steadily raise the energy density threshold requirements for the power battery system of new energy vehicles, moderately raise the energy consumption requirements for the whole vehicle of new energy vehicles, and raise the mileage threshold requirements for the continuous driving of pure electric passenger vehicles. For example, the continuous driving mileage of the pure electric passenger vehicle under operating conditions shall not be less than 250 km, and the mass energy density of the matching power battery system shall not be less than 125 Wh/kg; The energy density of battery system of non-fast charging pure electric bus shall not be lower than 135 Wh/kg, and the continuous driving mileage shall not be lower than 200 km (constant speed method); The energy density of the power battery loading system of the pure electric truck shall not be less than 125Wh/kg. 2. The New Deal was implemented from 26 March 2019 and the transition period was from 26 March 2019 to 25 June 2019. During the transition period, subsidies will be paid at multiples of the corresponding 2018 standard. 3. After the transition period, local governments will no longer provide subsidies for the purchase of new energy vehicles (except for new energy buses and fuel cell vehicles), but will instead use them to support the construction of charging (hydrogenation) infrastructure "short plates" and ancillary operational services. 4. Subsidy policies for fuel cell vehicles and new energy buses will be announced separately. During the transitional period, fuel cell vehicles sold under licensing will be subsidized by 0.8 times of the corresponding standard in 2018. Following is the original text of the Notice on Further Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles jointly issued by the four ministries: Provinces and Autonomous Regions, The financial departments (bureaus) of municipalities directly under the Central Government and cities separately listed in the state plan, Industrial and informatization authorities, Science and Technology Department (Bureau, Commission), Development and Reform Commission: In order to support the high-quality development of the new energy vehicle industry, We will do a good job in promoting the use of new-energy vehicles, Relevant matters concerning the further improvement of the fiscal subsidy policy for the promotion and application of new energy vehicles are hereby notified as follows: First, we will optimize technical indicators, adhere to the principle of "supporting the superior and supporting the strong," appropriately raise the threshold for technical indicators in accordance with the principles of advanced technology, reliable quality, and guaranteed safety, keep the upper limit of technical indicators basically unchanged, give priority to supporting high-quality products with high technological level, and encourage enterprises to pay attention to safety and consistency. Mainly: steadily improve the new energy vehicle power battery system energy density threshold requirements, moderately improve the new energy vehicle energy consumption requirements, improve the pure electric passenger vehicle driving mileage threshold requirements. See annex for details. Second, improve the subsidy standards, release the pressure in stages, reduce the subsidy standards for new energy passenger vehicles, new energy buses, and new energy trucks, promote the survival of the fittest in the industry, and prevent sharp fluctuations in the market, in accordance with the factors such as the scale efficiency and cost reduction of new energy vehicles, and the provisions on the withdrawal of the subsidy policy. III. Improving the liquidation system and raising the capital efficiency Starting from 2019, for vehicles with operating mileage requirements, part of the funds will be allocated immediately after completion of sales licensing, and liquidation can be applied for according to the procedures after the mileage requirements are met. Sales of licensed vehicles with operating mileage requirements after the release of the policy, from registration No subsidy shall be granted if the operation fails to meet the requirement of 20,000 km within 2 years from the date of record, and the advance funds shall be deducted at the time of liquidation. IV. Creating a Fair Environment and Promoting Consumer Use From 2019 onwards, models that meet the requirements of the Announcement but do not meet the technical requirements of the 2019 Subsidy will also be included in the Catalogue of Recommended Motor Vehicles. Local governments should improve their policies and stop subsidizing the purchase of new-energy vehicles (except new-energy buses and fuel-cell vehicles) after the transition period and shift to supporting the "short-board" construction of charging (hydrogenation) infrastructure and ancillary operational services. If the local government continues to grant purchase subsidies, the central government will make corresponding deductions for the relevant financial subsidies. 5. Strengthen quality supervision, ensure vehicle safety, further strengthen safety and consistency supervision, and accelerate the establishment of a normal mechanism for product safety monitoring and "consistency" spot checks by the competent departments in charge of the industry. Suspension or cancellation of the recommended vehicle model catalogue and corresponding suspension or cancellation of financial subsidies for vehicles with major safety accidents caused by product quality or major quality defects determined by relevant departments. This Notice shall be effective from 26 March 2019 and shall cover the transition period from 26 March 2019 to 25 June 2019. Transition period, sales of licensed vehicles that meet the requirements of the 2018 Technical Indicators but do not meet the requirements of the 2019 Technical Indicators, In accordance with the Notice of the Development and Reform Commission of the Ministry of Finance, Ministry of Science and Technology, Ministry of Industry and Information Technology on Adjusting and Perfecting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles (Caijian (2018) No. 18), the sales of licensed vehicles meeting the requirements of the technical indicators in 2019 shall be subject to the following conditions 0.6 times the subsidy corresponding to the standard in 2018. Sales of licensed fuel cell vehicles during the transition period are subsidized at 0.8 times the 2018 equivalent standard. Subsidy policies for fuel cell vehicles and new energy buses will be announced separately. Establishment of punishment mechanisms, break away from local protection, other relevant regulations such as supervision and administration will continue to be implemented in accordance with the Ministry of Finance, Ministry of Science and Technology, Ministry of Industry and Information Technology, Development and Reform Commission "Notice on Adjusting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles" (Cai Jian (2016) No. 958), The Notice on Relevant Issues Concerning the Approval Responsibility for the Promotion and Application of New Energy Vehicles (Cai Jian (2016) No. 877), the Notice on Financial Support Policies for the Promotion and Application of New Energy Vehicles 2016-2020 (Cai Jian (2015) No. 134) and the Notice on Adjusting and Perfecting Financial Subsidy Policies for the Promotion and Application of New Energy Vehicles (Cai Jian (2018) No. 18) and other relevant documents shall be implemented. Ministry of Finance, Ministry of Industry and Information Technology, Ministry of Science and Technology, Development and Reform Commission, 26 March 2019 "Appendix: New Energy Vehicle Promotion Subsidy Program and Product Technical Requirements" I. Subsidy Standards and Technical Requirements for New Energy Passenger Cars (1) Subsidy Standards for New Energy Passenger Cars. (2) Technical requirements for passenger cars with new energy sources. 1. The 30-minute maximum speed of a pure electric passenger car shall not be less than 100 km/h. 2. The continuous driving mileage of the pure electric passenger vehicle shall not be less than 250 km under the working condition method. The mileage of plug-in hybrid passenger vehicle (including augmentation program) shall not be less than 50 km under the working condition method. 3. Pure electric passenger vehicle power battery system Vehicles with mass energy density not less than 125Wh/kg, 125 (inclusive)-140Wh/kg, 140 (inclusive)-160Wh/kg, and 160 Wh/kg and above shall be subsidized by 0.8 times, 0.9 times, and 1 time, respectively. 4. Set the adjustment coefficient according to the energy consumption level of the pure electric passenger vehicle. Compared with the Notice on Adjusting and Perfecting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles (Caijian (2018) No. 18), the energy consumption of pure electric passenger vehicles shall be increased by 10% (inclusive)-20% of the vehicle models shall be subsidized by 0.8 times, 20% (inclusive)-35% of the vehicle models shall be subsidized by 1 times, and 35% (inclusive) or more of the vehicle models shall be subsidized by 1.1 times. 5. The fuel consumption of plug-in hybrid passenger vehicles with pure electric driving range less than 80km (excluding the fuel consumption of electric energy conversion) is less than 60% compared with the corresponding limit value in the current national standard of conventional fuel consumption. The vehicle with the ratio between 55% (inclusive) and 60% shall be subsidized by 0.5 times, and the vehicle with the ratio less than 55% shall be subsidized by 1 time. For plug-in hybrid passenger vehicles with pure electric continuous driving mileage greater than or equal to 80 km, the 100 km power consumption in A state shall meet the threshold requirements of pure electric passenger vehicles in 2019. Subsidy Standards and Technical Requirements for New Energy Buses (1) Subsidy Standards for New Energy Buses. The details are as follows: (2) Technical requirements for new energy buses. 1. Energy consumption per unit mass load (Ekg) of non-fast charging pure electric buses shall not be higher than 0.19 Wh/km · kg The energy density of the battery system shall not be less than 135 Wh/kg and the driving range shall not be less than 200 km (constant velocity method). The additional mass required for calculating the Ekg value shall be implemented in accordance with the Notice on Financial Support Policy for the Promotion and Application of New Energy Vehicles 2016-2020 (Caijian (2015) No. 134), and the energy consumption rate shall be tested in accordance with the Test Method for Energy Consumption Rate and Continued Driving Mileage of Electric Vehicles (GB/T 18386-2017) (the same applies to new energy trucks). 2. The quick-charging rate of fast-charging pure electric bus is higher than that of 3C. 3. The fuel-saving rate of plug-in hybrid electric bus (including augmentation program) is higher than 60%. For plug-in hybrid electric buses fueled with gaseous fuels, the conversion is carried out according to a certain proportion on the basis of oil-electric hybrid electric buses. Plug-in hybrid electric buses (including augmentation) shall have a pure electric continuous driving range of not less than 50 km (constant speed method). 4. Cancel the threshold requirement that the total mass of the battery system of the new energy bus shall not be higher than 20% of the total mass of the whole vehicle (m/m). Subsidy Standards and Technical Requirements for New Energy Trucks (1) Subsidy Standards for New Energy Trucks. The details are as follows: (2) Technical requirements for new energy trucks. 1. The energy density of the power battery loading system of the pure electric truck shall not be less than 125Wh/kg. 2. Energy consumption per unit load (Ekg) of pure electric truck shall not be higher than 0.30 Wh/km · kg. The power consumption per ton of operation type pure electric special vehicle (according to the test mass) shall not exceed 8kWh. 3. Fuel consumption of plug-in hybrid electric trucks (including augmentation program) The consumption (excluding the fuel consumption of electric energy conversion) is less than 60% of the corresponding limit value in the current national standard of conventional fuel consumption. 4. The continuous mileage of a pure electric goods vehicle shall not be less than 80 kilometres. Plug-in hybrid trucks (incl. Augmentation) shall have a pure electric drive range of not less than 50 km.