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Since the beginning of June, 2013, a message comes out that a new around of subsidy policy on new energy will be launched. Reports say the Ministry of Finance (MOF), Ministry of Science and Technology (MOST), Ministry of Industry and Information Technology (MIIT) and National Development and Reform Commission (NDRC) have reached an agreement to extend 3 years and increase pilot cities for the subsidy policy on new energy automobile.
Expectation fails
In 2009, MOF, MOST, MIIT and NDRC jointly launched a project to popularize and apply “one thousand new-energy automobiles in 10 cities” (short for “one thousand automobiles in each of ten cities” project). MOF and MIIT together issued Interim Procedures on Fiscal Aid Management in the Promotion of Energy-saving and New-energy Automobile (hereinto after Procedures) and Recommended Automobile Catalogue for Energy-saving and New-energy Automobile Promotion Program (hereinto after Catalogue). The project plans to apply one thousand new-energy automobiles in one city, 10 cities every year, 3 years in total, and try to realize the goal that the national new-energy automobiles in use takes up 10% of the total automobile market by 2012.
Minister of MIIT Mr. Wan Gan used to say that by the end of 2012, there have been over 27,800 new-energy automobiles in the whole country, 80% of which are public buses. According to statistics of China Association of Automobile Manufacturers released in January, in 2012, the sales amount of national automobiles outnumbers 19 million. Obviously, at the end of 2012, the new energy automobiles in use accounts for less than 1% of the whole automobile market. The “one thousand automobiles in each of ten cities” project fails to reach original expectation.
Even so, there are still some supporters in the industry because some pilot cities see certain progress in implementing the new-energy automobile policy.
According to news published by Hefei city, 5,622 new-energy automobiles have been applied, taking up 20% of the national total. Similarly, 1,663 new-energy automobiles have been applied in Zhengzhou, 111% of the demo promotion target (1,500 sets).
However, most cities among 25 pilot cities don’t reach their promotion target. For example in Xiamen, at the end of November, 2012, the number of new-energy automobiles is 425, 386 of which are hybrid power buses, less than a half of the promotion target—1,000 sets.
“As what we see, the result of the ‘one thousand automobiles in each of ten cities’ project is not satisfactory. Related departments are too hasty,” a famous automobile analyzer tells the journalist on June 17.
The tempt beyond reach
“Hefei can reach the national target is because it is where Ankai, JAC and GuoXuan High-Tech are located. Hefei municipal government can make full use of this advantage and complete the promotion,” Mr. Wang Binggang says on June 18. Mr. Wang is the head of experts at the leading group office for national clean automobile, a distinguished expert of the major scientific and technological project of national MIIT 863 program.
According to the Procedures, all the motorcycle types listed in the Catalogue will get a fiscal subsidy of 50,000-600,000 RMB. “Under the guide of the policy, the fiscal subsidy is a major power driving new-energy automobile manufacturers to develop new-energy projects,” Mr. Wang says.
According to the Procedures, a hybrid power urban bus which uses NI-MH battery, lithium-ion battery and super capacitor with maximum electric power ratio above 50% and fuel saving ratio above 40% will get a subsidy of 420,000 RMB. A blade electric vehicle of the same system can get 500,000 RMB, and a fuel cell vehicle gets 600,000 RMB.
If a vehicle gets 400,000 RMB, one city applying 1,000 vehicles will get 400 million RMB, and the total 25 pilot cities will get 10 billion RMB. In addition, the four ministries provide exclusive land and fiscal support for the “one thousand automobiles in each of ten cities” project and additional fiscal support. It is said MOF has completed the audit of related fiscal subsidy in March.