“Cutting government subsidies and a broad economic slowdown are undermining demand for electric vehicles in China,” Li said at a briefing in China’s Hefe city.

He also said that production of Nio trains suffered from quarantine measures and Chinese authorities during the COVID-19 epidemic in the country. They were involved in the assembly, logistics and delivery of finished products. As a result, Nio has produced 150,000 fewer units this year than originally planned, Li said.

Recall that from January 1, 2023, the Chinese authorities will stop providing subsidies to any buyer of an electric car. Problems with sales of such vehicles will occur in the first half of 2023, according to Li.

The practice of state incentives for electric transport demand has existed in China for 13 years. Now, for example, a Chinese who buys an electric car with a range of up to 400 kilometers can qualify for a state benefit of 12,600 yuan (about $1,745). In the past, such subsidies were much more serious. So, in the period up to 2018, when purchasing an “electric train” with a power reserve of more than 400 km, the owner was entitled to a subsidy of 50,000 yuan – about $ 8,300.

This policy has led to a strong demand for electric cars in China and consequently an explosion of the green transportation market, luring many manufacturers to this segment. The complete abolition of government payments for buyers of “battery” cars threatens to collapse demand for them and cause major problems for manufacturers.

“Cutting government subsidies and a broad economic slowdown are undermining demand for electric vehicles in China,” Li said at a briefing in China’s Hefe city.

He also said that production of Nio trains suffered from quarantine measures and Chinese authorities during the COVID-19 epidemic in the country. They were involved in the assembly, logistics and delivery of finished products. As a result, Nio has released 150,000 fewer units this year than originally planned, Li said.

Recall that from January 1, 2023, the Chinese authorities will stop providing subsidies to any buyer of an electric car. Problems with sales of such vehicles will occur in the first half of 2023, according to Li.

The practice of state incentives for electric transport demand has existed in China for 13 years. Now, for example, a Chinese who buys an electric car with a range of up to 400 kilometers can qualify for a state benefit of 12,600 yuan (about $1,745). In the past, such subsidies were much more serious. So, in the period up to 2018, when purchasing an “electric train” with a power reserve of more than 400 km, the owner was entitled to a subsidy of 50,000 yuan – about $ 8,300.

This policy has led to a strong demand for electric cars in China and consequently an explosion of the green transportation market, luring many manufacturers to this segment. The complete abolition of government payments for buyers of “battery” cars threatens to collapse demand for them and cause major problems for manufacturers.