China is considering extending its subsidy for electric cars. The Asian country wants to stimulate the sale of sustainable vehicles, insiders report.

Sales of electric cars in China fell for the first time last year. Last summer, China decided to cut subsidies. After ten years, the subsidy for electric vehicles should have been phased out by the end of this year.

Partly due to government support, China has become the largest market for electric cars in the world. The government wanted to get rid of the subsidy because the industry became too dependent on it.

The Chinese car industry is also struggling with the consequences of the new corona virus outbreak.

Sales of electric cars fell by 54 percent in January compared to a year ago. Many factories are closed and the Chinese can barely leave their homes to find a new car, for example.