Two of China's largest electric vehicle makers overcharged the government on vehicle subsidies, making them liable to return the amounts, Hong Kong's The Standard reported Friday, citing an industry ministry audit.
Both BYD (SHE:002594, HKG:1211, HKG:81211) and Chery improperly claimed a combined HK$636.4 million in government subsidies for environmental friendly cars sold during the five years to 2020, according to the audit.
Of the 21,725 vehicles that should not have received subsidies during the period, 7,663 were from Chery, while a further 4,973 were from BYD. Both vehicle makers accounted for nearly 60% of the improper claims, the report said.
While the audit did not specify any penalties, the Chinese government previously indicated that automakers would have to repay subsidies if their vehicles had not met their mileage thresholds.
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