Chinese electric vehicle manufacturer Chery has released an official statement denying allegations of improper claims for government subsidies for eco-friendly vehicles.
Denial of Allegations
Chery has rejected all allegations of wrongful subsidy claims. In its statement, the company emphasized that it accurately reported to authorities and committed no fraudulent acts. "We did not collect certificates for end sales; there was no fraudulent act," Chery said.
Audit Results
An audit conducted by the Ministry of Industry and Information Technology revealed that over 21,725 vehicles were improperly registered for subsidy claims. Approximately 7,663 of these vehicles belonged to Chery, with missing documents noted as the primary reason for disqualifications. Meanwhile, BYD faced disqualifications for nearly 4,973 of its vehicles due to similar issues.
Context of Subsidies and Government Reactions
Chinese authorities previously provided substantial subsidies for new energy vehicles to promote their adoption. However, the government did not accuse either Chery or BYD of fraud, and no fines or reimbursements have been imposed at this time. According to past policies, manufacturers of vehicles that fail to meet mileage standards must repay subsidies.
The allegations against Chery stem from a recent audit that revealed discrepancies in securing subsidies for eco-friendly vehicles. The outlined circumstances underscore the necessity for strict adherence to regulations by car manufacturers.
