Zhong Guo Jing Ji Wang·2025-07-15 12:29Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) has released a public notice regarding the preliminary audit of subsidy funds for the promotion and application of new energy vehicles (NEVs) from 2016 to 2020, indicating that many car manufacturers received less subsidy than applied due to non-compliance with submission requirements and data upload issues [1][6]. Summary by Relevant Sections Subsidy Reduction Data - From 2016 to 2020, the automotive industry saw a total subsidy reduction of 860 million yuan, with Chery Automobile and BYD accounting for over 40% of this total, with reductions of 240 million yuan and 140 million yuan respectively [2][6]. - Chery's peak subsidy reduction occurred in 2019, with 7,216 vehicles and over 230 million yuan reduced, while BYD's peak was also in 2019, with 2,604 vehicles and 749 million yuan reduced [6][8]. Company Responses - Chery Automobile clarified that the subsidy reduction was due to the sales terminal payment vouchers not meeting requirements, asserting that there was no fraudulent behavior involved [3][8]. - BYD has not yet provided a response to the situation [3]. Historical Context of Subsidies - The subsidy policy for NEVs began in 2009, significantly boosting sales, with a peak of 74,700 units sold in 2014, marking the emergence of new car manufacturers [4]. - A joint inspection mechanism was established in 2016 to verify vehicle usage and data authenticity, leading to a gradual reduction of subsidies to encourage industry upgrades [5]. Regulatory Implications - The MIIT's review of subsidy flows over the past five years serves as a regulatory measure to ensure fair competition in the industry as it transitions to a post-subsidy era [9].