Ministry of Finance completes EV fraud probe but withholds results

China's Ministry of Finance says it has completed onsite probes of domestic automakers suspected of cheating on government subsidies for electric vehicles.Investigators are discussing the findings with other government agencies and will disclose penalties for violators in due time, according to a ministry statement on its website last week.The investigations -- launched in January -- were triggered by media reports that Chinese automakers inflated EV sales and used substandard parts to claim subsidies.Miao Wei, minister of industry and information technology, told reporters in March that "a small number of companies" were found to have cheated on EV subsidies. The companies will have their subsidies confiscated and EV production licenses revoked, he said.Under current policies, only domestically built EVs, plug-in hybrids and fuel cell-powered vehicles qualify for government subsidies. Hybrids, such as the Toyota Prius, do not qualify even if they are produced in China.Beijing plans to phase out subsidies for EVs and plug-in hybrids by 2020.The finance ministry's fraud probes have had little impact on EV sales in China so far this year.In April, EV deliveries soared 244 percent to 23,908 vehicles.In the first four months, EV sales surged 171 percent year on year to 66,444 vehicles, according to the China Association of Automobile Manufacturers.

Ministry of Finance completes EV fraud probe but withholds results

Featured Stories