China is considering a further reduction in electric-vehicle subsidies next year as the government pushes automakers to innovate rather than rely on fiscal policy to spur demand for alternative-energy cars, people familiar with the plan said. The average sales incentive per EV may be lowered by more than a third from the 2018 levels, said the people, who asked not to be identified disclosing information that isn’t public. Vehicles may be required to be able to go at least 200 kilometers (125 miles) on a single charge to be eligible for incentives, up from 150 kilometers currently, said the people. The plan is still under discussion and subject to changes, they said. Subsidies have been key to making plug-in hybrids and EVs from companies such as BYD Co., backed by Warren Buffett, more affordable to Chinese consumers and helping the country surpass the U.S. as the world’s biggest in 2015.