On September 17, 2013, the website of the ministry of industry and information technology (miit) published a notice jointly issued by the ministry of finance, the ministry of science and technology, the ministry of industry and the national development and reform commission (NDRC) on continuing the promotion and application of new energy vehicles (hereinafter referred to as the notice). The long-awaited new energy vehicle subsidy policy has finally been finalized and highlighted ten highlights.

Highlight 1: expand the pilot area

In addition to the 25 cities that originally implemented the project, some pilot cities will be added. At the same time, pilot areas will be established with pilot cities as the core, covering surrounding cities, forming a whole area for demonstration and promotion of energy-saving and new energy vehicles, and expanding the radiation scope. In pilot cities and regions, new energy vehicles will receive both central and local financial subsidies.

Highlight 2: promotion target improvement

According to the notice, from 2013 to 2015, the total number of new-energy vehicles promoted in super-large cities or key regions shall be no less than 10,000, and the total number of new-energy vehicles promoted in other cities or regions shall be no less than 5,000. In addition, this promotion will not take a single city as the promotion unit, which can activate the sharing of new energy vehicles and infrastructure within the urban circle. The cities and regions to be promoted also have no quantitative limits and should be determined flexibly according to the situation of the declared cities and regions.

Highlight 3: promotion of urban elimination mechanism

Previous pilot policies on the promotion of new energy vehicles and private purchase of new energy vehicles had no penalty mechanism, although they required pilot cities to set targets. Among the 25 pilot cities of "1000 vehicles in 10 cities", some cities had only over 100 new energy vehicles at the end of the pilot, far less than the target. According to the circular, relevant cities must accept annual assessment, and those who fail to meet the annual promotion target will be eliminated.

Highlight 4: direct subsidies from the central government to car companies

Previously, the promotion subsidies for new energy vehicles were distributed by the government of the place where the sales of automobile enterprises took place. This measure made foreign automobile enterprises face concerns about the subsidy declaration process when entering the pilot cities, and also stimulated local governments to take care of local enterprises. According to the circular, the manufacturing enterprise shall submit an application for advance allocation of subsidy funds to the finance and science and technology departments where the enterprise is registered. The central government will allocate the subsidy funds to new-energy vehicle manufacturers, which will be pre-allocated on a quarterly basis and liquidated annually. This changes the original practice of giving financial subsidies to local governments and facilitates the entry of new-energy vehicle enterprises into private consumption markets in various regions.

Highlight 5: the procurement of official vehicles is inclined towards new energy vehicles

According to the circular, the government and official vehicles will be purchased in favor of new energy vehicles, and the proportion of new or updated public transport, business, logistics and sanitation vehicles will be no less than 30 percent. Local governments have issued specific policies and measures on the purchase of new energy vehicles, bus operations, and the construction of supporting facilities.

Highlight 6: passenger car subsidies to see mileage

Battery pack energy was the main measure of subsidies for private purchases of new energy vehicles introduced in 2010, but now passenger vehicles are based on the vehicle's range in pure electric mode. According to the new regulation, new-energy passenger cars will receive subsidies ranging from 35,000 yuan, 50,000 yuan and 60,000 yuan. The adjusted policy can directly reflect the performance of new energy vehicles, which is conducive to guiding the research and development direction of automobile enterprises and the understanding of market consumers. The subsidy for commercial vehicles is comparable to that for passenger vehicles, about 10 to 20 percent of the price of a new energy vehicle.

Highlight 7: implementation of subsidy withdrawal mechanism

Fiscal subsidies are a last resort and encourage companies to rely on subsidies, so targets and exit mechanisms should be clear. "Notice" is put forward, the new energy vehicles is the duration of the subsidy policy from 2013 to 2015, and since 2014, the annual subsidies will gradually reduce, in 2014 and 2015, pure electric passenger cars, plug-in hybrid (including increase program) passenger vehicles, pure electric vehicle, fuel cell car allowances in 2013 based on the standard fell by 10% and 20% respectively; The standard of pure electric bus and plug-in hybrid bus (including adding program) remains unchanged.

Highlight 8: new subsidies for fuel cell vehicles

The subsidy model of this round of subsidy policy is further increased, including pure electric special vehicles such as postal service, logistics and sanitation, as well as new subsidies for fuel cell vehicles. But gas-electric hybrids such as Toyota and Honda are still not covered.

Highlight 9: eliminating local protectionism

In view of the local protection and monopoly problems encountered in the promotion of new energy vehicles, the notice stipulates that the number of non-local brands in the promotion and application of vehicles shall not be less than 30%. Do not set up or disguised barriers to restrict the purchase of foreign brand vehicles.

Highlight 10: subsidies for medium-sized pure electric buses

In the last round of subsidies, only pure electric buses above 10 meters were eligible for subsidies. In this policy, pure electric buses of 6 meters to 8 meters can get 300,000 yuan subsidy; Those with a distance between 8 meters and 10 meters can get 400,000 yuan, while those with a distance above 10 meters can still get 500,000 yuan, which is consistent with the previous round's standard. Mid-size buses have been added to the list of subsidies, increasing the choice of bus companies.