The Chinese Ministry of Finance has issued a budget for energy conservation and emission reduction subsidies in advance for 2025
The Chinese Ministry of Finance has issued a budget for energy conservation and emission reduction subsidies in advance for 2025, which is related to subsidies for new energy vehicles
Daily Economic News
2024-11-22 18:17
Recently, the Ministry of Finance issued the "Notice on Advance Allocation of 2025 Energy Conservation and Emission Reduction Subsidy Funds Budget" (hereinafter referred to as the "Notice"). Among them, the budget for energy conservation and emission reduction subsidies in 2025 exceeds 9.885 billion yuan, which will be used for the settlement of subsidy funds for the promotion and application of new energy vehicles in 2021 and previous years, the pre allocation of subsidy funds for new energy vehicles that have been promoted but have not yet been cleared, and the allocation of incentive funds for the demonstration and application of fuel cell vehicles in the second year.
The Notice clearly states that support the promotion and application of new energy vehicle products that meet the requirements of subsidy policies, and further expand the consumption of new energy vehicle products; Rewards will be given to cities that meet the conditions to carry out industrialization research and demonstration applications of key core technologies for fuel cell vehicles, forming a new development model for fuel cell vehicles with reasonable layout, emphasis, and coordinated promotion.
In response to this, Chen Liran, Director of Forecasting Research at the China Automotive Strategic Development Research Center at Tianjin University, stated in an interview with the Daily Economic News that the key significance of the "Notice" lies in its early issuance, indicating the determination of policies to support the production of new energy vehicles and providing strong encouragement to the market.
According to the notice, the total approved subsidy funds for the promotion and application of new energy vehicles in 2021 and previous years in China are about 10.2 billion yuan. The actual deducted pre allocated funds this time are about 4.25 billion yuan, and the total amount of funds issued this time is about 5.95 billion yuan. The second part has been promoted but the pre allocated funds for clearing vehicle subsidies are approximately 2.31 billion yuan.
According to data from the China Association of Automobile Manufacturers, in October of this year, domestic new energy vehicles continued to maintain rapid growth, with monthly production and sales reaching new highs, reaching 1.463 million and 1.43 million units respectively, an increase of 48% and 49.6% year-on-year. New energy vehicle sales accounted for 46.8% of the total new vehicle sales. From January to October, the production and sales of new energy vehicles reached 9.779 million and 9.75 million respectively, an increase of 33% and 33.9% year-on-year. The sales of new energy vehicles accounted for 39.6% of the total sales of new cars.
It is worth noting that this notice also specifies that 25 cities (districts) in 10 provincial-level administrative regions including Beijing, Tianjin, Hebei, Jiangsu, and Zhejiang can receive the second year's reward funds for fuel cell vehicle demonstration applications, with a total reward fund of about 1.625 billion yuan. The top five cities for reward funds are Tangshan, Shanghai, Zhengzhou, Beijing, and Tianjin.
