<center>https://mentormarket.io/wp-content/uploads/2019/03/Chinese-EV.jpg</center> <br/><h3><a href="https://chargedevs.com/newswire/china-slashes-ev-subsidies-electric-automaker-shares-fall/">China
slashes EV subsidies, electric automaker shares fall (Charged EVs)</a></h3>
<ul><li>China has
announced <strong>substantial cuts to EV
subsidies</strong>, with the highest level subsidy being cut by <strong>50% (to USD3,700)</strong> and the <strong>minimum
range requirement increased form 150km to 250km. </strong></li><li>The government had
announced it would reduce subsidies this year and phase them out after 2020 <strong>due to concerns of innovation being held
back by automakers reliance on subsidies</strong>. </li><li>However, as the
finance ministry has also called for <strong>local
cities and provinces to remove subsidies on EVs</strong> (incl. trucks and buses), <strong>the total reduction amounts to c. 67%
compared to the 40-50% the market was expecting</strong>.</li></ul>
<h3>Analysis &amp; Comments</h3>
<ul><li><strong>Such a cut was expected</strong>, with considerable press speculation.</li><li><strong>China has been saying for a long time that by 2020 they will phase out all subsidies on EVs </strong>– a 50% reduction in federal subsidies in 2019 should therefore have been expected by the industry, if not the market (although the local authority impact may not have been totally priced in).</li><li><strong>The Chinese have already developed the scale in battery manufacturing to effectively compete in EVs without subsidies</strong>. Over the next 5 years this scale will further dramatically increase. Subsidy removal will only result in <strong>consolidation in cell manufacturers in China. </strong></li><li>There should not be any significant slowdown in EV adoption in China in the long term but there could be short term dip in growth. <strong>Charging infrastructure development is far more important than either subsidies and battery costs</strong>. This are the areas where most of the investment will likely be made by utilities, oil &amp; gas majors, and auto OEMs.   </li></ul>
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<p style="text-align: center;"><em>Published by <a href="https://mentormarket.io/mrcryptolemon/">Mr. Crypto Lemon</a>
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