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THE VEHICLES
China has announced substantial cuts to existing sub-
sidies for EV purchases. The subsidy for pure EVs with
ranges of 400 kilometers (250 miles) and above will be
halved, to 25,000 yuan ($3,700) per vehicle, the Chinese
Ministry of Finance said (via Bloomberg). The minimum
range to qualify for any subsidy will also be raised from
150 km to 250 km.
The government warned late last year that it would
reduce the subsidies in 2019, and phase them out
completely after 2020, citing concerns that automakers’
reliance on subsidies has made them slow to develop
new technologies and better vehicles. However, the
recently announced cuts were deeper than expected,
which caused share prices of Chinese EV manufacturers
to falter.
In response to the news, BAIC BluePark said that it
may raise vehicle prices. BYD, however, says it’s pre-
pared to adapt to the new market conditions, and that
manufacturing scale and an edge in technology make it
resistant to risk.
US-listed ADRs for EV startup NIO, one of the few
Chinese EV firms that US investors can easily invest in,
slid on the news, continuing a decline that began earlier
in March when the company reported disappointing
earnings.
“While the incumbent OEMs will see some earnings
damage, we consider NIO the most vulnerable of all,”
wrote Bernstein Analyst Robin Zhu. “Despite strug-
gling for demand, the company recently indicated it
won’t reduce prices to offset lower EV subsidies. Today’s
subsidy cuts mean NIO’s cars just got meaningfully more
expensive for consumers.”
The finance ministry is also encouraging Chinese cities
and provinces to abolish subsidies on purchases of EVs,
including buses and trucks, after a three-month grace
period. The elimination of incentives from local gov-
ernments, combined with the announced cuts in federal
subsidies, will result in a total reduction of about 67
percent, Jefferies Analyst Patrick Yuan told Bloomberg –
a far more drastic cut than the 40 or 50 percent the stock
market was expecting.China slashes EV subsidies
Complete Coach Works (CCW), a California company
that offers repairs and upgrades for both fossil-fueled
and electric transit buses and coaches, has announced an
optional, larger 466 kWh onboard energy storage system
for its Zero Emission Propulsion System (ZEPS).
The larger battery pack is paired with a liquid-cooled
all-electric drive system and a permanent magnet syn-
chronous motor.
CCW says there are more than 50 ZEPS buses de-
ployed in service in the US. Operators can opt to pur-
chase newly refurbished buses from CCW’s inventory or
have their existing fleets converted to all-electric.
CCW Director Brad Carson said, “We were able to
keep the battery pack light, which improves vehicle reli-
ability and efficiency. This upgrade will give agencies the
extended range they need on a single charge.”
Complete Coach Works
introduces a 466 kWh battery
pack for transit buses
Image courtesy of Complete Coach Works