A BYD E6 electric taxi is charged at the company's charging station in Shenzhen
China has determined to extend the validity period of the subsidies on new energy purchases and NEV purchase tax exemption for two years, state media reported on March 31, quoting an executive meeting of the State Council chaired by Chinese Premier Li Keqiang.
The extension of NEV subsidies and purchase tax exemption is expected to help China maintain its leadership in the global NEV domain. Due to the coronavirus spread and the Spring Festival, China’s NEV sales plunged 59.5% year on year to 59,705 units in the first two months. Although the government is pushing ahead with the phase-out of NEV subsidies, the tried-and-true approach might be useful to stabilize the NEV consumption during the virus-hit days.
Rows of Hyundai Motor cars parked for shipping in the southeastern port of Ulsan
The State Council still approved other stimulus policies for the car sales good. The Central Treasury will, by means of “replacing subsidies with rewards,” support key regions like Beijing, Tianjin, and Hebei in scrapping diesel trucks under the China Ⅲ emission standard or below. Besides, the pre-owned car dealers are allowed to pay VAT at 0.5% of their sales, effective from May 1 to the end of 2023.
A BYD E6 electric taxi is charged at the company's charging station in Shenzhen
The extension of NEV subsidies and purchase tax exemption is expected to help China maintain its leadership in the global NEV domain. Due to the coronavirus spread and the Spring Festival, China’s NEV sales plunged 59.5% year on year to 59,705 units in the first two months. Although the government is pushing ahead with the phase-out of NEV subsidies, the tried-and-true approach might be useful to stabilize the NEV consumption during the virus-hit days.
Rows of Hyundai Motor cars parked for shipping in the southeastern port of Ulsan
