The Chinese government has announced that it will extend the tax exemption for new energy vehicles, which was due to expire at the end of 2022, for another year to continue supporting the switch to zero and low-emission vehicles.
The national finance ministry, state tax authorities and the ministry of industry and information technology jointly announced this week that buyers of battery-powered, plug-in hybrid and fuel cell vehicles will continue to be exempt from paying the 5% vehicle purchase tax. issued a notice stating that Until the end of 2023.
The extension of tax exemption, which has been in place since 2014, is expected to support consumer sentiment and help maintain the growth momentum of the country’s NEV market, which consists mainly of electric and hybrid vehicles.
According to the China Association of Automobile Manufacturers (CAAM), NEV sales in China will more than double to 3,860,000 units in the first eight months of 2022, accounting for almost 23% of total Chinese car sales. ICE) vehicles fell 12% to 13 million.
With battery-powered vehicle sales reaching 3.04 million and expected to approach 5 million for the full year, China is the largest market for zero-emission vehicles.
Local automakers ramp up the launch of new smart EVs, which is also helping to boost demand.