Incentives: Electric Car Edition

Caixin: China Pulls Plug on Electric Vehicle Fraud

Nearly 4,500 subsidized electric vehicles produced by the seven companies were found to have less powerful batteries than the firms declared when applying for incentives, according to an MIIT statement published on Saturday.

The seven firms are Zhengzhou Nissan Auto Co. Ltd., SAIC Bus Tangshan Co. Ltd., Chongqing Lifan Passenger Vehicle Co. Ltd., Chongqing Hengtong Bus Co. Ltd., Shanghai Sunwin Bus Co. Ltd., Nanjing Special Auto Manufacturing Co. Ltd., and China Youngman Automobile Group Co. Ltd.

The MIIT has removed the models in question from the list of approved electric vehicles and stopped accepting applications from the seven firms. It has also ordered them to rectify all existing problems within two months, after which they will be reassessed by MIIT.

The move comes amid an ongoing nationwide investigation, which started in January 2016, into new-energy vehicle subsidy fraud — spurred by a government incentive program — that has seen firms collect hundreds of millions of yuan after inflating the number of vehicles they had made.

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Author: 罗臻 http://www.investinginchinesestocks.blogspot.com

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