Promoting Sustainable Consumption: The Impact of New Subsidies on Electric Vehicle Adoption

New Energy Policy: “Subsidy Standards Adjusted”

Published on: May 21, 2025, 10:36 AM

Source: People’s Daily

This year, various regions have been actively promoting the adjustment of subsidy standards for new energy vehicles, aiming to achieve significant results. According to data released by the Ministry of Commerce, since the implementation of the new subsidy policy, over 1.2 billion individuals have benefited from subsidies, driving sales to exceed 72 billion units.

The new subsidy policy focuses on enhancing the quality and effectiveness of production, with an emphasis on green circular economy, stability, and innovation. In the first quarter, the overall sales of new energy vehicles increased by 1.6 percentage points, with the Ministry of Commerce noting, “The adjustment of subsidies is a true reflection of the market situation.”

Recently, a manufacturer in Jiangsu province announced it had purchased new equipment under the subsidy scheme, receiving a 500 million subsidy, which was subsequently utilized for procurement and production, resulting in an additional 200 million in subsidies. As of this year, the subsidy policy has successfully driven new purchases of vehicles.

Notably, personal electric vehicle purchases have surged, with prices for electric cars not exceeding 6000 units. The policy allows for a 15% subsidy on eligible products, with each vehicle qualifying for one subsidy, not exceeding 500 units each.

According to the Ministry of Commerce, by May 5, 2025, the number of vehicles purchased under the subsidy program is expected to reach 4,167,000 units. The department has reported a 10.5% increase in the number of vehicles eligible for subsidies compared to last year.

In the home appliance sector, electric appliances are also expected to see similar adjustments. The subsidy classification for electric appliances will shift from “8+N” to “12+N,” ensuring alignment with vehicle purchase criteria.

Furthermore, the ministry has indicated that by April 24, 2025, electric appliance sales had reached 767.4 million units, with a total subsidy amounting to 33.9 billion yuan. This indicates a robust trend in consumer purchases of electric appliances.

In terms of policy implementation, the Ministry of Commerce continues to enhance the ecological aspects of the subsidy program, ensuring that new energy vehicles meet environmental standards. The focus remains on promoting green development, with the aim of achieving substantial results in the coming years.

As of now, various regions have been consistently enhancing their subsidy programs to support the transition to new energy vehicles. By the end of this year, it is projected that the cumulative subsidy funds will exceed 810 billion yuan, further stimulating the market.

The Ministry of Finance has announced plans to increase funding and support for new energy vehicles, aiming to enhance the effectiveness of subsidy policies and promote sustainable development. Additionally, the central government has set a target of 30 billion yuan for funding related to new energy vehicles by 2025, showcasing a significant increase from the previous year.

In summary, the adjustments in subsidy policies for new energy vehicles are part of a broader system initiative, aiming to engage various stakeholders and promote effective implementation. With continuous support, the goal is to establish a more robust framework for the development of new energy vehicles.