Two vehicle makers have been fined by the China authorities for producing and selling electric/hybrid vehicles with batteries with lower power capacity than advertised. Over 25 car makers – including Nissan and Hyundai – have been accused of breaking the rules on green car subsidies.
The punishments – fines and withdrawal of subsidy qualifications – are a new step in efforts to curb a new subsidy cheating scandal. China spent $4.5 billion last year in subsidies for green vehicles, in a plan to boost sales of electric and plug-in hybrids.
Fortune reports that Lifan Group and Chongqing Hengtong Bus Company have been accused of using subpar batteries in their cars, for which they received $47.7 million in subsidies. According to state media, quoted by Fortune, Hengtong was fined €8.3 million. It also saw its 2016 subsidy qualifications revoked.
Further reading on fortune.com
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