Four ministries and commissions: 2022 new energy vehicle purchase subsidy standards will be reduced by 30% on the basis of 2021

Recently, according to the official website of the Ministry of Finance, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Development and Reform Commission (hereinafter referred to as the four ministries and commissions) jointly issued the "Notice of the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Development and Reform Commission on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles in 2022" (Caijian [2021] No. 466, hereinafter referred to as the "Notice").

(Source: Official website of the Ministry of Finance of the People's Republic of China, issued by the Central Broadcasting Network)

The interpretation is as follows:

I. On the background of the promulgation of the Notice

In accordance with the decision-making and deployment of the Party Central Committee and the State Council, since 2009, the Ministry of Finance and relevant departments have vigorously supported the development of the new energy automobile industry. With the joint efforts of all parties, the technical level of New Energy Vehicles in China has continued to improve, product performance has been significantly improved, and the scale of production and marketing has ranked first in the world for six consecutive years.

In April 2020, the four ministries and commissions jointly issued the "Notice on Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles" (Caijian [2020] No. 86), which clarified that "in principle, the subsidy standards for 2020-2022 will be reduced by 10%, 20% and 30% respectively on the basis of the previous year, and the subsidy standards for vehicles that meet the requirements in the field of public transportation will not be regressed in 2020, and the subsidy standards for 2021-2022 will be reduced by 10% and 20% respectively on the basis of the previous year." In principle, the maximum subsidy scale is about 2 million vehicles per year." In 2021, the new energy automobile industry has achieved substantial growth in the face of adverse effects such as the spread of the global epidemic and the shortage of chips, and the industrial development trend is good. In 2022, the subsidy policy will continue to decline in an orderly manner according to the established arrangements to create a stable policy environment, and the four ministries and commissions recently jointly issued the "Notice", which clarified the relevant requirements of the financial subsidy policy.

Second, on the 2022 new energy vehicle purchase subsidy standards

According to the provisions of Caijian [2020] No. 86 document, the subsidy standard for the purchase of new energy vehicles in 2022 will be reduced by 30% on the basis of 2021; the subsidy standard for urban buses, road passenger transport, taxi (including online car-hailing), sanitation, urban logistics and distribution, postal express, civil aviation airports and new energy vehicles in the field of public service of party and government organs will be reduced by 20% on the basis of 2021. According to this, the Notice clarifies the subsidy standards for different types and different fields of vehicle products, and will be implemented from January 1, 2022.

Third, about the technical indicators requirements for new energy vehicle products in 2022

In recent years, under the impetus of subsidy policies to support the excellent and support the strong, the supply quality of new energy vehicle products in China has continued to improve, the technical level has made significant progress, and the practicality of products has been greatly improved. According to the provisions of Caijian [2020] No. 86 document "2021-2022, in principle, maintain the overall stability of technical indicators", the purchase subsidy policy in 2022 maintains the energy density, mileage, energy consumption and other technical indicator thresholds of the power battery system unchanged, stabilizing the expectations of enterprises.

Fourth, on clarifying the deadline for purchase subsidies

In accordance with the requirements of Caijian [2020] No. 86 document, the implementation period of the financial subsidy policy for the promotion and application of new energy vehicles will be extended to the end of 2022 based on factors such as technological progress and scale effects. Taking into account factors such as the development plan of the new energy automobile industry, the market sales trend and the smooth transition of enterprises, in order to maintain the good development momentum of the new energy automobile industry and stabilize the industry and consumer expectations, the Notice clarifies that the subsidy policy for the purchase of new energy vehicles will be terminated on December 31, 2022, and the vehicles licensed after December 31 will no longer be subsidized.

Fifth, on further strengthening product safety supervision

The safety of new energy vehicle products is related to the vital interests of consumers and is an important guarantee for the healthy and orderly development of the new energy automobile industry. In recent years, new energy vehicle products with intelligent network characteristics have gradually been applied to the market, and the problems of data security and network security have become important concerns, and fires and safety accidents of new energy vehicles in China still occur from time to time. In order to further strengthen product safety supervision, ensure vehicle quality and information security, and effectively protect the interests of consumers, the Notice clearly proposes to improve the safety supervision system of new energy vehicles and further consolidate the main responsibilities of new energy vehicle manufacturers. At the same time, around the vehicle fire, major accidents and other situations, the establishment of cross-departmental information sharing mechanism and vehicle accident reporting system, for enterprises that conceal accidents and do not cooperate with the investigation, depending on the seriousness of the circumstances, suspend or cancel the subsidy qualifications of the models involved.