Govt cuts subsidies for new energy vehicles

China is slashing subsidies on new energy vehicles and requiring local authorities to invest in charging infrastructure as part of its efforts to boost the competitiveness of local manufacturers in the world's largest automotive market.

To qualify for any subsidy from the central government, electric passenger cars, which account for the majority of new energy vehicles, need to have a range of at least 250 kilometers, up from 150 km last year, according to a document the Ministry of Finance issued on Tuesday.

The subsidy for those with a driving range of 400 kilometers and above will be cut by half from 50,000 yuan ($7,446.5) to 25,000 yuan, while those running between 250 km to 399 km will receive a subsidy of 18,000 yuan. Last year, they could receive 34,000 yuan to 45,000 yuan.