Carmakers to promote NEVs in rural areas, say Ministry of Industry and Information Technology

The Chinese government has enacted preferential measures on new energy vehicles in rural areas that will last until December, in an effort to boost sales and the rural revitalization strategy.

According to a notice the Ministry of Industry and Information Technology released on Wednesday, a total of 10 domestic carmakers, including Great Wall, Changan, Chery, BYD and BJEV, are to promote 16 new energy vehicle models throughout the countryside.

The automakers are offering varying discounts, on average 2,000-5,000 yuan ($285-$715), according to the China Association of Automobile Manufacturers who will be carrying out related events in rural areas from late July.

The local governments will provide subsidies to encourage villagers and reduce the expense for them to trade for with new energy vehicles.

Five promotional events are being organized for rural residents in Qingdao in Shandong province; Haikou in Hainan province; Kunming in Yunnan province; Chengdu in Sichuan province; and Taiyuan in Shanxi province.

From July 2019, China's new energy vehicle sales retreated for 12 consecutive months after a steep cut in government subsidies.

In the first half of 2020, the sales of new energy vehicles reached 393,000 units, a decline of 37.4 percent year-on-year.