China Penalizing 20 More Automakers for PEV Subsidy Rule Violations

An additional 20 automakers have violated rules in China’s “new energy vehicle” subsidy program targeted at increasing plug-in electrified vehicle sales.

Securities Daily, an official Chinese newspaper, reported today that 20 more companies have committed violations. These include global automakers Nissan and Hyundai, and Chinese makers Geely, JAC Motor, and a subsidiary of electric carmaker BYD. Five bus makers had already been cited for violations.

Nissan hadn’t responded for comment, while Geely declined to comment. Hyundai is checking with a “relevant internal department,” and will later comment.

“Right now we do not have any idea where the suspected list is coming from,” a BYD spokeswoman said. The spokeswoman said that the company had not received any official notification from the Chinese government.

JAC Motor announced a joint venture with Volkswagen earlier this week to develop plug-in electrified vehicles. JAC said it didn’t have an immediate comment on rule violations.

SEE ALSO:  China Penalizing ‘New Energy’ Bus Makers for Taking Illegal Subsidies

Yesterday, five Chinese bus makers were penalized by the government for taking about 1 billion yuan ($150 million) in illegal subsidies for new energy vehicles. One of them, Suzhou Gemsea Coach Manufacturing, had its production license revoked by the Ministry of Finance. The ministry will fine four other firms for violations, including Chery Wanda Guizhou Bus, King Long United Auto Industry, Shenzhen Wuzhoulong Motors, and Henan Shaolin Bus.

Chery Wanda Guizhou Bus is a subsidiary of popular Chinese carmaker Chery Holding.

The scandal has placed a dark cloud over China’s drive to use subsidies to combat heavy air pollution in the nation’s growing cities. New energy vehicle subsidies played an important part of PEV sales more than quadrupling last year to 331,000 vehicles.