Media Reports, page-30

China’s capital city is offering subsidies for purchases of new-energy vehicles to replace old cars, the latest attempt by local authorities to boost consumption in a slowing economy. The financial aid provided by the city of Beijing ranges from 8,000 yuan ($1,196) to 10,000 yuan for qualified buyers who scrap or resell cars owned for more than a year, among other conditions, the local commerce bureau said in a statement Sunday.

The capital city’s move follows similar measures announced by Shanghai late last month that also involved raising a cap on car ownership and cutting a purchase tax for some passenger vehicles. Passenger vehicle sales in China slid 17% in May from a year earlier, and not a single new car was sold in Shanghai in April as the virus gripped the city.

China’s central government is considering extending tax exemptions on new-energy car purchases in a bid to boost an auto sector battered by strict Covid lockdowns, state television reported Wednesday, citing a Cabinet meeting chaired by Premier Li Keqiang.

As the COVID-19 lockdowns come to an end, China is once again unlocking full speed of electrification.

According to EV Volumes' data, shared by Jose Pontes, some 403,029 new passenger plug-in electric cars were registered in China in May, which is 109% more than a year ago. The result represents more than half of the global plug-in market. (I thought that was interesting)

The share of plug-in cars increased to 31%, including 23% for all-electric cars. BEVs remain in the majority, but PHEVs noted a higher growth rate (up 187% vs. 91% in the case of BEVs).

Results for the month:

• BEVs: about *298,000 and 23% share
• PHEVs: about *105,000 and 8% share
• Total: 403,029 (up 109%) and 31% share

* estimated

Plug-in electric car sales in China – May 2022

So far this year, over 1.8 million new passenger plug-in electric cars were registered in China.

• BEVs: about *1.44 million and 20% share
• PHEVs: about *0.36 million and 5% share
• Total: 1,807,337 and 25% share

* estimated from the market share

For reference, in 2021, the total plug-in electric car registrations increased by about 153% year-over-year to over 3.2 million (from 1.27 million in 2020). In 2022, the total volume might reach 5-6 million, according to some forecasts.