Report: Shanghai Will Subsidize EV Purchases With 10,000 Yuan Per Unit For Rest Of 2022

Shanghai will subsidize battery electric vehicle purchases within its borders with 10,000 yuan (~$1,500) per unit for the rest of 2022, Zero Hedge reports, citing Bloomberg as a source. The subsidy started in June and ends at the end of the year, according to the local government. Bloomberg wrote in a wrap-up last week, “Consumers whose vehicles have been sold or scrapped will receive the subsidy if they purchase a new pure electric vehicle from dealers or stores registered in Shanghai.”

In May, Reuters reported that China was in talks with automakers about exciting subsidies for EVs that were set to expire this year. A person close to the matter told Reuters that the goal was to keep a key market growing as the broader economy slows.

Earlier this month, China Briefing reported that China was actually considering extending its EV subsidies to 2023. It should be noted that these include plug-in hybrid EVs. In addition to tackling the slow growth in the auto market, China Briefing noted that the subsidies could be extended if the government deemed it necessary to stimulate the market.

China is a key leader in the automotive market, and this includes leading in EV sales. China has around 46% of the global EV sales. It is also home to the fastest growing young EV startups. It’s clear the country intends to remain an EV leader.