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China's Electric Vehicle Sales Will Continue Boom Despite Subsidy Cuts

Discussion in 'General Discussion' started by TexasTesla, Apr 12, 2019.

  1. TexasTesla

    TexasTesla Elio Addict

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    China's electric vehicle sales will continue boom despite subsidy cuts...

    CNBC
    • Electric car sales in China jumped almost 62% in 2018 according to official figures.
    • But Beijing is set to reduce its subsidies to buyers.
    • But Fitch Ratings says the showroom price will likely remain at a similar level.
    [​IMG]


    Electric car sales in China jumped almost 62% in 2018 to 1.3 million vehicles, according to China's Association of Automobile Manufacturers. The same organization sees electric vehicle sales hitting 1.6 million this year.

    But the Chinese government has recently raised the bar for electric cars that qualify for subsidies and reduced the amount it is willing to provide to relevant companies.

    Booming growth in China's electric vehicle (EV) market won't slow because of Beijing's drastic reduction in subsidies, according to Fitch Ratings.

    Electric car sales in China jumped almost 62% in 2018 to 1.3 million vehicles, according to China's Association of Automobile Manufacturers. The same organization sees electric vehicle sales hitting 1.6 million this year.


    At the same time, authorities have used law to pass the responsibility for pushing new energy vehicle sales away from government and onto car manufacturers based in China.

    Chinese electric carmaker BYD Co, backed by Warren Buffet, saw its shares slump last week after admitting that the new rules had affected first-quarter sales.

    Fitch said Monday that the ticket price of an electric car in China is unlikely to surge as manufacturers will subsidize customers and pass on at least some of the losses to suppliers. The agency believes EV makers will continue to "prioritize volumes and market share over profitability."

    The new rules come in to force on June 26 and Fitch expects the transition period will "pull forward" a burst of buying.

    ...

     
    Last edited: Apr 12, 2019
  2. W. WIllie

    W. WIllie Elio Addict

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    And the price of tea in China is at a record low!
     
    84mpg likes this.

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