Byd could reimburse millions of dollars in grants following suspicious irregularities

The survey reveals that 21. Nevertheless, 725 electric vehicles should never have benefited from these public aid for a total amount of 864.9 million yuan, or $ 121 million.

Byd in the viewfinder of the authorities for irregularities – Byd could reimburse millions dollars

The audit documents were published last month by the Ministry of Industry and Information Technologies and take stock of the practices of Byd and Chery. Meanwhile, Chery is at the top of the offenses: 7,661 disqualified vehicles, followed by byd with 4,973.

Vehicles that did not meet the autonomy criteria requested to claim ecological subsidies have benefited from these public aids. Therefore, The audit documents are blurred about sanctions and do not explicitly mention the reimbursement obligation.

However. Similarly, the authorities previously indicated that manufacturers have the obligation to return the subsidies for vehicles not in accordance with the eligibility criteria. A case that comes out at a delicate moment for the Chinese automotive industry.

And for good reason: the manufacturers are facing an overcapacity of production. undergo the consequences of a fierce price war which reduces their profitability. Tensions between concessionaires, suppliers and manufacturers are intensifying in a difficult context. The potential reimbursement of these subsidies could worsen the financial situation of Byd and Chery.

High Chinese leaders have recently announced their intention to strengthen price regulation. help remove unnecessary production capacities according to state media. China has massively subsidized new energy vehicles between 2009. 2022 to accelerate the adoption of electric vehicles, rechargeable hybrid and fuel cells.

The goal? Make China as a world leader in electric mobility. Effective strategy since sales byd could reimburse millions dollars of electric vehicles now exceed those of thermal cars every month since March. The long -term vision pays.

This successful energy transition justifies the extent of public investments. The ministerial report is based on audits carried out by local communities which are currently pursuing control of the 1920s. 2022. Additional verifications could show other irregularities in the allocation of subsidies.