USA: EV car subsidies to end by 2020/21

According to a media report, the US government is pulling out subsidies to the tune of US$ 2,500-7,500 granted to electric vehicles (EVs). Apart from EVs, subsidies for other items including renewable energy sources would also be removed.

Buyers of electric vehicles and hybrid cars are eligible for a subsidy from the government. The total number of vehicles from a single manufacturer that can claim subsidy is 200,000, after which the subsidies are phased out. Tesla is the only carmaker to have surpassed this figure.

General Motors (GM) is expecting to reach the 200,000 mark by the end of 2018, after which the subsidies gradually diminish until they are phased out in 2020. Other carmakers are not expected to reach this number anytime soon.

Carmakers like GM, Nissan and Tesla have lobbied to lift the cap on the total vehicles.

Source: Autoblog