China’s electric vehicle sales will continue boom despite subsidy cuts

Booming growth in China’s electric vehicle (EV) market won’t slow because of Beijing’s drastic reduction in subsidies, according to Fitch Ratings.

Electric car sales in China jumped almost 62% in 2018 to 1.3 million vehicles, according to China’s Association of Automobile Manufacturers. The same organization sees electric vehicle sales hitting 1.6 million this year.

But the Chinese government has recently raised the bar for electric cars that qualify for subsidies and reduced the amount it is willing to provide to relevant companies.