One of Chery’s many sub-brands, Exeed, has just previewed its latest model, known as the Exlantix E05. Set to make its global debut at next month’s Munich Motor Show, the attractive SUV will be sold with a range-extender powertrain and, unlike many other new vehicles coming out of China, should be offered internationally.

Viewed from the front, the shape of the headlights immediately reminds us of the current ICE-powered Porsche Macan, except the lights of the E05 are a little more intricate, each complete with three LED daytime running lights. The main headlamps are then positioned vertically on either side of the small front grille.

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While the front half of the SUV looks quite sleek, the rear looks a little bulbous and has been showcased with relatively understated LED taillights. Look closely, and you may also notice the Exlantix E05 comes standard with a roof-mounted LiDAR sensor.

Early information out of China reveals the E05 is 4,780 mm (188.1 inches) long, 1,890 mm (74.4 inches) wide, and stands 1,725 mm (67.9 inches) tall with a 2,800 mm (110.2-inch) wheelbase.

Simple Cabin with Many Screens

Like so many new vehicles from China, the interior is quite minimalist and tech-focused. Positioned in front of the two-spoke steering wheel is a small digital instrument cluster, while in the center of the dash is a large infotainment screen. Exeed has then added an expansive display in front of the passenger.

Other key interior details include two cupholders, a pair of wireless phone chargers, and a pass-through storage area under the center console.

As the new model has yet to be showcased in full, many technical details remain unconfirmed. However, regulatory filings have revealed it’ll use a 1.5-liter turbocharged four-cylinder engine alongside an electric motor. The engine will deliver 154 hp (115 kW), but it’s unclear how much power the electric motor delivers.

China’s electric vehicle industry has seen explosive growth in recent years, and much of that momentum has been fueled by generous government incentives. While this support has helped establish China as a global EV powerhouse, a closer look reveals that not all of the subsidies have been fairly or properly claimed.

Read: China Has Poured Over $230 Billion Into EV Industry, Study Finds

Even some of the country’s biggest names in the EV space, including BYD and Chery Automobile, have reportedly received funds they weren’t entitled to.

An audit of China’s EV subsidy program covering the years 2016 through 2020 uncovered that around 864 million yuan (roughly $121 million at current exchange rates) was distributed to automakers that didn’t meet the qualifying criteria. Chery, for instance, claimed 240 million yuan (about $33 million) for approximately 8,860 electric and hybrid vehicles that were not eligible for the subsidy.

Big Names, Big Numbers

Additionally, China’s Ministry of Industry and Information Technology has revealed that 143 million yuan (about $20 million) worth of subsidies were provided to BYD for just 4,900 cars. There’s no word on whether these subsidies have had to be returned to the authorities or if the excess amounts were deducted from recent payments, as reported by Bloomberg.

Subsidy System Open to Abuse

China launched its EV subsidy program in the early 2010s and provided as much as 60,000 yuan ($8,400) per car. This rebate was paid in bulk to manufacturers who could then use the discount to slash prices for customers. As it turns out, the program was rife for scams, and in 2016 alone, it’s reported that dozens of companies fraudulently claimed roughly 9.3 billion yuan (approximately $1.3 billion) in subsidies.

Government officials are keeping a watchful eye on the local EV market. Car brands have been urged to stop the ongoing price war and to stop using shady sales targets to boost volumes. It was recently revealed that many companies are providing new dealers to traders and dealers in bulk, who then register them so brands can record them as sales. These vehicles then hit the market as “zero-mileage used cars.”