The Big Picture

Subsidy cut has dented sales, but China's EV manufacturers need better products to win over buyers

  • China
  • 5 min read
  • Dec 12, 2019
  • By Hua Nan, Wang Xiao'e

By Lu Shu © CompassList

Eliminating subsidies is a painful must for the sustainability of China’s electric vehicle industry

On June 25, China's central and local governments began another round of subsidy cuts to the electric vehicle industry. Chinese EV maker BYD, which reported a 30% decline in sales and an 89% plunge in net profit in its third quarter, attributed the poor performance to the decrease in governmental funding.
About 151,000 new electric vehicles were purchased in China in June, the high for 2019. Since then, the number of vehicles sold has declined for four consecutive months, falling to a low of 75,000 units in October, a 45.6% drop from October 2018.
In 2009, when annual sales of new energy...

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Edited by Wendy Lovinger

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