The electric car production industry will be hit hard by a decision by the China government to cut subsidies to electric car buyers by more than half.

As from June the $9,830 subsidy given by central government to the buyer of an electric car will be cut to $4,100.

Local government subsidies, which have been up to 50% more than the central government subsidy, are to be abolished.

China’s electric car market represents half the world market so the effect of the subsidy cut on the production of elrctric cars  could be very great.

Many foreign car makers, including Ford, GM, Mercedes, Audi, Nissan, Peugeot, Jaguar, Hyundai and Mazda, have jv production deals in China which will now look less attractive.

The reason for the decision given by the China government is that it will encourage  “high-quality development of a new-energy automobile industry.”

This is being taken to mean that, by the removal of subsidies, the government will ensure that only the fittest survive.

https://www.electronicsweekly.com/news/business/electric-car-production-hit-china-subsidy-cut-2019-03/