China enforces penalties on seven new energy automakers

China has enforced administrative penalties on seven “new energy” automakers for producing and selling automobiles with batteries that had lower power capacity than promoted.

The companies are China Youngman Automobile Group, SAIC Tangshan Bus, Lifan Group, Zhengzhou Nissan, Shanghai Sunwin Bus, Nanjing Special Auto Manufacturing and Chongqing Hengtong Bus, the Ministry of Industry and Information Technology stated on its website on Saturday.

The government has alleged dozens of automakers of breaking guidelines on green automobile subsidies, casting a pall over China’s drive to support the market and combat heavy pollution, which impacts big swathes of the nation.

China has invested billions of dollars in subsidies for the production of such cars. The strategy has actually helped increased sales of electric and plug-in hybrids.