Electric cars output, sales fall in China after subsidy scam

China saw a drastic slowdown in new energy vehicle output and sales in September after authorities cracked down on subsidy scams, latest industry data showed.
A total of 43,000 new energy vehicles -- pure electric cars and hybrid electric cars -- were produced in September, up 25.7 per cent year-on-year, while sales increased 43.8 per cent to 44,000, according to figures from the China Association of Automobile Manufacturers (CAAM).
The growth rates were markedly lower than in August, when new energy vehicle output and sales soared 81.5 per cent and 92.2 per cent, respectively.
The slowdown came after regulators announced punishments for five new energy vehicle producers in September for illegally obtaining government subsidies, state-run Xinhua news agency reported today.

China has been encouraging the use of new energy vehicles to upgrade the industry and ease pressure on the environment, offering tax exemptions and subsidies for car purchases and requiring government agencies to buy more new energy cars.
Due to these incentives, the number of new energy cars sold in 2015 more than tripled year-on-year to 331,100, the report said.
In the first nine months of this year, 302,000 new energy vehicles were produced and 289,000 were sold, up 93 per cent and 100.6 per cent respectively, according to CAAM.