The Chinese government, seeking to reverse slumping sales of electrified vehicles, plans to recruit 10 major automakers to offer steep discounts in rural areas in the second half of the year.
The 10 companies are SAIC-GM-Wuling Automobile – GM’s light-vehicle joint venture with SAIC Motor Corp., and nine Chinese automakers, according to the China Association of Automobile Manufacturers.
Among the Chinese automakers, six are state-owned: BAIC Motor Co., Changan Automobile Co., FAW Motor Corp., Dongfeng Motor Group, JAC Automobile Co. and Chery Automobile Co.
The other three participants are private companies: BYD Co., Great Wall Motor Co. and EV startup Hozon New Energy Automobiles.
Select eligible electrified vehicles will be marketed at discounts ranging from 2,000 yuan ($286) to 8,000 yuan, CAAM said.
Electrified-vehicle sales in China are still reeling from lower subsidies Beijing enacted in June 2019, when incentives for EVs were cut by more than 60 percent and subsidies for plug-in hybrids were halved.
In June, combined sales of full-electric vehicles and plug-in hybrids shrank for the 12th straight month, falling 33 percent to around 104,000.
In the first six months, cumulative deliveries of EVs and plug-in hybrids plunged 37 percent to some 393,000.