China Faces Another EV Subsidy Scandal!

[balthazar]

Generous government subsidies have been behind China taking the lion’s share of global electric vehicle sales in recent years — but now they’re being called to question and face another scandal.

While the country saw its “new energy vehicle” sales spike 79 percent last year and its domination of global sales confirmed, that came from government-funded subsidies allowing automakers to offset their manufacturing costs and consumers to pay affordable, competitive purchase prices for electric vehicles (EVs).

“The consequence of the subsidy-fueled growth is that it also triggered excess production capacity, because everyone wants to benefit from government support,” said Claudia Liu, the regional compliance officer for Daimler Greater China.  Liu also commented that some unnamed companies have abused the subsidies, by reallocating funds earmarked for EV production.

https://finance.yahoo.com/news/china-faces-another-ev-subsidy-170000913.html