China is slashing subsidies on new-energy vehicles, the move that has already sparked mix feelings among consumers and carmakers.

The Ministry of Finance stated that the move aims to encourage high-quality development and drive sub-standard units out of the market.

Electronic vehicles, one of the most popular "new-energy" cars in China, have become quite common on city streets across the country. The huge demand for charging stations is the testament to their sudden rise.

"From 9:30 till around 11:30 in the morning, it's packed with cars here," said Ma Rongliang, a security guard at a charge station located on Hangzhou's people's avenue. "The sixteen charging spaces are always occupied throughout the day."

China started to offer subsidies to new-energy vehicle owners ten years ago. They were looking to drive consumer demand and stimulate the sector's development. Policy-makers have decided it's now the time to put a small squeeze on the industry. As the new plan is rolled out, to qualify for any subsidies, your car must have a range of 250 kilometers. Owners of cars with a range of 400 kilometers and above will have their subsidies cut by half from 50,000 yuan. Without these incentives, many worry the prices of these cars will go up.

The change is sparking plenty of debate. Critics argue Chinese car makers are still not meeting standards and that customers will be the biggest loser.

"If the manufacturers do not make any adjustments, the price for the cars will go up a little bit without the subsidies," said Cheng Hao, the showroom manager at Dongfeng Motor.

Though individuals are likely to pay more, experts say the industry will be benefited from and is ready for the move.

"China's new-energy vehicle market has entered a stage of rapid growth after a decade," said Lian QingFeng, the spokesman of Baic Motor New Energy Vehicles.

"It has a strong foundation for technological development. If an industry keeps relying on subsidies, it will never survive," he added.

The government is giving buyers and carmakers a grace period before the new plan takes effect on June 26.