Gasgoo.com (Shanghai September 20) - The drastic readjustment in subsidy policies for energy-saving vehicles, on the heels of the phasing out of subsidies for preferential purchase and vehicle replacements, will see a majority of small vehicles losing eligibility for purchase subsidies. According to the Shanghai Morning Post, nearly 80 percent of vehicles from manufacturers including Geely, Chery and BYD will lose their bonuses.

In response to the news, automobile shares on the Shenzhen Stock Exchange and Shanghai Stock Exchange fell dramatically. BYD's value fell 5.48 percent at its highest while Foton's fall peaked at 3.79 percent.

According to a joint announcement made earlier this week by the Ministry of Finance, National Development and Reform Commission and Ministry of Industry and Information Technology, the readjustment of subsidies for energy-saving policies will come into effect on October 1. The alterations to the law will distinguish different types of fuel efficiency for seven different types of vehicles. The lightest type, coupes under 750 kg with a manual transmission, will need to have a fuel economy of 4.8 L per 100 km driven to be eligible for the subsidy. Meanwhile, coupes over 1,320 kg need to have a fuel economy of 6.7 L per 100 km.

The new legislation will affect most models on the market today. Additionally, according to an unnamed source from the China Passenger Car Association, there may only be around 50 upcoming vehicles that will be eligible for the subsidy.