BEIJING: China will cut subsidies by a fifth next year on new energy vehicles (NEV) such as electric cars, the finance ministry said on Thursday, as it seeks to combat pollution and cultivate home-grown champions in the auto sector. China, the world's biggest auto market, has set a target for NEVs, including plug-in hybrids and hydrogen fuel cell vehicles, to make up 20% of auto sales by 2025, up from 5% now. China will also beef up regulations on new auto investment and manufacturing factories, the ministry added, in a move to prevent overcapacity in the auto sector. It will take steps to spur further consolidation in the auto industry and build a more comprehensive supply chain, the ministry added. It expects to sell 1.8 million NEVs next year, up from about 1.3 million this year.

Source: Mint December 31, 2020 10:18 UTC