After the September Volkswagen Emission Scandal, it looks like China is the next target. The Chinese authorities have recently suspected that the green auto makers in the country are carrying out illicit practices. The authorities have claimed to suspect a large scale fraud that China may be experiencing in terms of receiving subsidies illegally.
According to a newspaper report, five automakers in China have already been penalised for caring out this fraud activity.The Chinese Association of Automobile Manufacturers (CAAM) reported last Friday,that it is investigating on this large scale fraud China suspects to facing at present.
Besides the five automakers, the authorities also identified other companies who had breached regulations to obtain government subsidies, said an official from CAAM.
China’s finance minister, Lou Jiwei, on Thursday announced that the five companies were caught committing breaches including inflating production and sales so that they could qualify for the subsidies which total up to $150 million.
The ministry is also likely to revoke the production licence of one of the five auto companies so caught and is likely to disqualify it, along with the other companies so caught and prevent them from receiving any subsidies from the government.
China’s green auto market is now one of its major priorities. It is also likely to include the green auto manufacturing in the “Made in China 2025” campaign that was launch last year.
Beijing offers subsidies and tax breaks to the auto manufacturers who produces electric and green vehicles. It also aims to widen the charging station network all such vehicles.
