The recent Ministry of Industry and Information Technology (MIIT) report on settlement of NEV subsidies (2019-2020) for each automotive manufacturer reaffirms the trend of subsidy reductions. The MIIT plans to further cut the NEV subsidies by another 30% year-on-year in 2022 and fully terminate the subsidy scheme after 2022. Reacting to the subsidy cuts, both foreign and domestic automotive brands are adjusting their pricing strategy, but use different approaches.
