Ford Authority

Ford EVs In China Will Continue To Receive Subsidies

As Ford Authority reported in January, China was previously planning to slash subsidies on new-energy vehicles (NEVs) including electric cars by 30 percent in 2022 before ending them altogether by the end of the year. However, after that country’s economy faced a slowdown following the COVID-19 pandemic, government officials quickly began having second thoughts and entered discussions with automakers with the idea of extending those subsidies, making Ford EVs more affordable for the masses. Now, China will reportedly continue to offer this incentive after all, according to Reuters.

China has reportedly decided to extend its purchase tax exemption on NEVs through the end of 2023, which is expected to result in total tax cuts of around 100 billion yuan ($14.6 billion USD). The move comes as overall automotive sales are down in the country, which is pushing to transition to EVs exclusively in the coming years.

With the EV transition moving along a bit faster than expected in the U.S., Ford EVs were also in danger of losing their eligibility for the $7,500 federal tax credit by early 2023 as well. However, just last week, a bill was passed that reforms the existing federal credit and keeps Ford EVs and those from other automakers at or over the current cap of 200,000 units eligible for tax credits through the end of 2032, as part of the Inflation Reduction Act of 2022.

There are some caveats to this new bill – dubbed the Clean Vehicle Credit – however, including the fact that qualifying vehicles must go through the final assembly process in the U.S. to be eligible. Additional stipulations will be added next year, but for now, a number of Ford EVs and PHEVs qualify for the credit, including the Ford E-Transit, Ford F-150 Lightning, Ford Mustang Mach-E, Ford Escape PHEV, Lincoln Corsair Grand Touring, and Lincoln Aviator Grand Touring.

We’ll have the latest on the status of EV incentives soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. Falcon

    Of course. That will give Ford and GM the incentive to raise prices in China like the are here. As written in the on Aug. 15, 2022
    As the Democrats force Americans to go green, automakers are going even greener. Ford and General Motors unveiled price increases for their electric vehicle lineups as the Inflation Reduction Act — which includes electric vehicle tax credits — is slated to become law.
    Citing “significant material cost increases and other factors,” Ford’s announcement revealed price hikes between $6,000 and $8,500 for its electric vehicles. The F-150 Lightning Pro, for example, will sell for $46,974 — a $7,000 increase from the $39,947 charged for last year’s model. GM likewise increased the cost of its electric Hummer by $6,250 last month.
    The price hikes are comparable to the $7,500 tax credits for new electric vehicles included in the $740 billion Inflation Reduction Act, which currently awaits President Joe Biden’s signature. The legislation earmarks a total of $369 billion to combat “the existential crisis of climate change,” according to remarks from Biden.
    “It addresses the climate crisis and strengthens our energy security, creating jobs manufacturing solar panels, wind turbines, and electric vehicles in America with American workers,” he said. “It lowers families’ energy costs by hundreds of dollars each year.”
    The price hikes appear to upend repeated assertions from the White House that electric vehicle tax credits — combined with elevated prices at the pump — will accelerate renewable energy adoption in the United States. “The more pain we are all experiencing from the high price of gas, the more benefit there is for those who can access electric vehicles,”


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