Chinese Government Tightens Hybrid Car Subsidies, New Conditions Introduced

KatadataOTO – The development of hybrid cars in China is quite rapid. This has prompted the government there to create a new policy.

The Chinese government has just announced new technical regulations for the distribution of incentives or subsidies for the 2026-2027 period.

In this new policy, they have made a number of adjustments. Specifically, several requirements for hybrid-powered cars.

It is stated that Plug-in Hybrid Electric Vehicles (PHEVs) are required to have a minimum pure electric range of 100 kilometers.

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The above amount is an increase from the previous requirement, which only mandated a range of about 43 kilometers.

In addition, fuel consumption is set at less than 70 percent of the standard limit for vehicles weighing under 2,510 kg.

Then, the fuel consumption for hybrid cars weighing 2,510 kg or more is only allowed to be less than 75 percent of the specified limit.

On the other hand, the Chinese government is not only adjusting policies regarding hybrid car incentives.

But also for the pure electric cars there. For example, power consumption must not exceed the limit specified in the new national standard GB 36980.1-2025.

According to a Carnewschina report on Monday (13/10), the above standard is claimed to be 11 percent stricter than the previous requirement.

“This adjustment is in line with the rapid improvements in NEV range and technology. Ensuring policies are aligned with technological advancements,” said Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA).

Cui Dongshu believes the new policy from the Chinese government can bring many positive impacts in the future.

For example, encouraging automotive manufacturers from the Land of the Bamboo Curtain to invest more in research and development.

“By raising the technical threshold, the government is directing companies to increase R&D investment, phase out obsolete products, and shift from scale expansion to high-quality development,” he affirmed.