Chinese auto body cuts EV forecast sales after subsidy scandal
The China Association of Automobile Manufacturers has cut annual forecast sales of “new energy vehicles” (as electric and hybrid vehicles are known in China) by 43%, from a projected 700,000 unit sales to 400,000, as a result of a recent scandal involving multiple domestic automakers falsely claiming green vehicle subsidies. Analysts are also predicting the scandal will cause an “industry-wide shakeup” including a tighter regulatory environment and a major change to subsidy policies after Chinese automakers received 30 billion yuan ($4.5bn) in subsidies in 2015 alone.
Analysts say a tighter regulatory environment as well as changing subsidy policies would speed up an industry-wide shakeup. Photo: AP