In 2022, China will reduce subsidies for new energy vehicles (NEVs), such as electric automobiles, by 30% and eliminate them entirely by the end of the year, according to the Finance Ministry's website, cited by Reuters.

In April 2020, the ministry said that NEV subsidies would be reduced by 10%, 20%, and 30%, respectively, from 2020 to 2022. Subsidies for NEVs for public transportation would be reduced by 10% in 2021 and 20% in 2022.

By 2025, China, which holds the world's largest auto market, wants NEVs, such as plug-in hybrids and hydrogen fuel cell vehicles, to account for 20% of all vehicle sales.

Volkswagen AG, General Motors Co, Toyota Motor Corp., and Tesla Inc are among the global automakers increasing electric vehicle manufacturing in China.

On Friday, NIO announced that owners of its ES8, ES6, and EC6 vehicles who placed a deposit on or before Dec. 31, 2021, and who take delivery before March 31, 2022, can still take advantage of the 2021 plan's incentives. According to the Shanghai-based corporation, any shortfall under the 2022 strategy will be borne by it.

China said it will also tighten oversight of NEV safety issues to prevent mishaps, according to the ministry. In December, a trade association, the China Association of Automobile Manufacturers, predicted that sales of NEVs in China will increase by 47 percent to 5 million by 2021.