China's Ministry of Finance and the State Taxation Administration have stated that, starting from April 1, 2027, VAT export rebate rate for new energy vehicles will be lowered from 13 percent to nine percent.
Industry analysts believe that this move is aimed to curb low-price export competition, to force industry consolidation through survival-of-the-fittest dynamics, promote industrial upgrading, and accelerate the transition from exporting products to exporting production capacity.
