(MENAFN) The BYD Auto Company Ltd., a Chinese car makers backed by Warren Buffett has ceased to pay the advanced USD18,850 subsidy to electric car buyers, reported Reuters.
Buyers will now have to pay the full amount of USD58,010 to the dealer, and then claim the subsidy from the government on their own.
Paul Lin, a BYD spokesperson said: "In Europe and the US, it is the buyer's responsibility to claim the subsidies. In China, dealers do that for the customers to boost demand, and now they find demand better than supply," continuing that BYD's decision would affect sales.
Electric car buyers receive half their USD18,850 subsidy from the central government and the other half from the municipal government as a way to encourage green cars in China.
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