The Chinese government has introduced tougher subsidy standards for buyers of new energy vehicles to achieve healthier development in the industry.

The new measures raise the energy density threshold for the new energy vehicle power battery system, moderately raise the energy consumption requirement and raise the mileage threshold for the continuous driving of pure electric passenger vehicles, according to a joint statement by China’s Ministry of Finance, Ministry of Industry and InformationTechnology, and two other ministries.

China is focusing “on supporting high-quality products with high technology, while encouraging enterprises to pay attention to safety and consistency of their products,” the finance ministry said in a statement.

Due to factors including economies of scale and cost reductions, the government reduced the amount of subsidies for new energy passenger vehicles, buses and trucks, while raising the technological threshold to promote the survival of the fittest and prevent drastic market fluctuations, it said.

Local governments are now required to stop subsidizing buyers of new energy vehicles other than new energy buses and fuel cell vehicles after a three-month transaction period and use the funds to improve charging facilities and other supporting services.