China in talks with automakers on EV subsidy extension

A Tesla electric vehicle (EV) drives past a crossing in Shanghai, China.- Reuters

SHANGHAI (Reuters): China is in talks with automakers about extending costly subsidies for electric vehicles (EV) that were set to expire in 2022, aiming to keep a key market growing as the broader economy slows, three people familiar with the matter said.

The move by policymakers comes as the world's second-biggest economy has slowed sharply -- and auto sales along with it -- after cities led by Shanghai imposed tight Covid-19 lockdowns from March.