China Extends Tax Breaks for Over 90% of New Energy Vehicles
China’s Ministry of Industry and Information Technology announced on Monday that more than 90% of the country’s current new energy vehicle (NEV) models will continue to receive tax breaks for purchases. This move comes as part of new technical requirements that have been unveiled by the ministry.
The new technical requirements for NEV eligibility for purchase tax exemptions from 2024 state that pure electric cars should have a driving range of at least 200 kilometers per charge, while plug-in hybrid cars should be able to run at least 43 kilometers on electricity. According to the statement released by the Ministry of Industry and Information Technology, the regulations also require a range attenuation rate of no higher than 35% under low temperatures for electric vehicles (EVs), and allow EVs capable of battery swapping to be eligible for the tax breaks.
As part of efforts to boost auto sales growth, China had previously unveiled a 520 billion yuan ($72.41 billion) package of tax breaks over four years for EVs and other green cars in June. The tax breaks are aimed at supporting the industry’s development and promoting the adoption of environmentally friendly vehicles in the country.
The move to extend tax breaks for over 90% of new energy vehicles reflects China’s commitment to promoting sustainable transportation and reducing carbon emissions. It also serves as an incentive for automakers to continue investing in the development of electric and hybrid vehicles, ultimately contributing to a greener future for the automotive industry.
With the new regulations in place, consumers can expect a wider range of affordable and environmentally friendly vehicle options in the market, making it more accessible for individuals to make sustainable choices when it comes to transportation.
As the global automotive industry continues to shift towards electric and hybrid vehicles, China’s initiatives in providing tax breaks for new energy vehicles set an example for other countries to prioritize sustainability and environmental conservation in the transportation sector.
