China’s NEV industry is facing a scandal, with claims that production numbers have been inflated to win subsidies.
Chinese media has reported that the Government has launched a fraud investigation into the figures, which reported that 379,000 NEVs were produced in 2015.
That number was previously reported by the Chinese Ministry of Industry and Information.
This is against registrations of just 108,000 in the first ten months of 2015.
Four government ministries are now reportedly joining forces to conduct investigations and a series of raids across China.
Local reports claim that some NEV component makers, such as battery producers, are “gaming the system” and selling product to low quality manufacturers who are in turn onselling the vehicles to subsidiaries and claiming the cars are part of a rental fleet.
The Government offers a host of subsidies to purchased new NEVs and these can run to more than US$20,000 for pure EVs.