That helped to turn China into the biggest market for electrics, accounting for about half of global sales. But demand sank in mid-2019 after regulators started shifting the burden to automakers by cutting subsidies and imposing minimum sales quotas.
First-quarter sales plunged more than 50% from a year earlier after China shut down most of its economy to fight the virus.
Subsidies will be limited to vehicles with a sticker price below 300,000 yuan ($42,500), the Finance Ministry said. That excludes Tesla’s Model 3 made at its factory in Shanghai, which starts at 324,000 yuan ($45,800).