Chery denies improper green vehicle subsidy claims in China
The denial follows an audit by the Ministry of Industry and Information Technology that disqualified declarations by Chery and BYD for a combined $53 million in subsidies covering thousands of vehicles sold between 2015 and 2020.
Chery stated that it had consulted authorities regarding missing receipts due to the age of the sales records. The company emphasized that it had truthfully reported the situation and denied any fraudulent activity.
'Our company has truthfully reported to the authorities we did not collect certificates for end sales; there's no fraudulent act,' Chery said in a statement.
The audit, conducted earlier this year, disqualified 21,725 vehicles due to discrepancies such as missing documentation or failure to meet mileage thresholds. Chery accounted for 7,663 of these disqualifications, with most cases involving missing certificates rather than mileage issues.
The government has not accused Chery or BYD of fraud, and the audit documents did not specify penalties or reimbursement requirements.
However, past policies have required automakers to repay subsidies for vehicles that failed to meet mileage standards. Chery clarified that the audit covered unpaid subsidy claims, meaning no repayments were necessary.
BYD, another major Chinese EV manufacturer involved in the audit, did not respond to requests for comment. - Reuters
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