TU-TESL

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China is also considering reducing subsidies to car buyers and limiting the number of eligible models to receive subsidies after Tuesday's announcement of a two-year extension of the new energy vehicle purchase and exemption from purchase tax until the end of 2022, Bloomberg reported. Several government agencies are discussing cutting subsidies for new energy vehicles by 10% in late 2020, according to people familiar with the matter. The people familiar with the matter said they were still in discussions to narrow the scope of new energy vehicles eligible for subsidies. Reducing subsidies may reduce the profits of companies such as. The two companies are counting on China, the world's largest car market, to boost sales. However, the novel coronavirus epidemic has been faced with a series of challenges from the electric vehicle manufacturers, which have led to a sharp fall in oil prices. China's novel coronavirus epidemic is being revived as early as possible by the government's efforts to take balanced measures. As manufacturing fell by a record amount in February, major industries have asked for government support. In order to become a leader in the new energy automobile industry, China has maintained an important Subsidy Plan in the past decade, and is gradually reducing some subsidies to make the industry more independent. Novel coronavirus epidemic hit China's automobile market in February. According to the data of China Automobile Industry Association, in February, China's automobile production and sales completed 285000 and 310000 vehicles respectively, with a decline of 83.9% month on month, 79.8% and 79.1% year on year respectively. In the first two months, the cumulative production and sales of 2.048 million vehicles and 2.238 million vehicles were respectively completed, down 45.8% and 42% year-on-year respectively. In February, the production and sales of new energy vehicles were 9951 and 12908, down 82.9% and 75.2% year on year. From January to February, the production and sales of new energy vehicles completed 53840 and 59705 respectively, down 63.8% and 59.5% year on year. The impact of the epidemic cannot be underestimated. At present, the European automobile market is also on the verge of collapse, with a large number of factories closed and sales stagnated. New car registrations in France and Spain fell more than two-thirds in March from a year earlier, according to the latest data. Sales of several car companies in the United States fell by more than 40% in the same month. China started subsidizing the purchase of electric vehicles in 2009 to promote the development of the industry, but gradually reduced subsidies in the past few years to encourage auto manufacturers to compete independently. The government had planned to eliminate subsidies completely by the end of this year, but it encountered the impact of the outbreak. But last summer's subsidy cuts triggered the first decline in sales of electric vehicles in China, which was only exacerbated by the epidemic. The Ministry of finance, the Ministry of industry and information technology and the national development and Reform Commission did not immediately respond to requests for comment. China is the market of electric vehicles that many enterprises are betting heavily on. Tesla chief executive Elon plans to rely on the Chinese market to achieve its ambitious electric vehicle goals. In January, the company began delivering Chinese made model 3 models to local consumers. The Shanghai Super factory is the key to Tesla's greater market share because it enables cars to get subsidies and better tax treatment. Although Tesla's new car registration rate has been slow recently, this weakness may be largely due to the seasonal and epidemic impact on the industry as a whole. GM also has high hopes for the Chinese electric vehicle market and has invested a lot of money. At the beginning of last month, the carmaker announced that it would invest $20 billion in electric vehicles and cars by 2025. GM has already launched some electric models in China ahead of the US market. In the United States, federal incentives for cars are shrinking. President trump has just completed a three-year new rule aimed at easing fuel efficiency. The regulation will restrain the development of electric vehicles to a certain extent. In terms of profits and sales, China is also an important market for German auto giants Volkswagen, Daimler and. Volkswagen will open two new factories in China this year to start producing pure battery powered vehicles, as a way to boost its global electric vehicle development goals. Mercedes - launched EQC electric and plans to expand its battery powered vehicle product line to at least 10 models in the next few years, with China as one of its major markets. Daimler has also set up a joint venture with Chinese cars to produce smart cars, while BMW's joint venture with Chinese cars plans to produce Mini pure electric vehicles.