China’s Ministry of Finance announced that new energy vehicles purchased from January 1st of 2021 to December 31st of 2022 will be exempted from vehicle purchase tax. The NEVs in question include pure electric vehicles, plug-in hybrid (including extender) vehicles and fuel cell vehicles. This move aims to stimulate the sales of NEVs.
Those NEVs which have been listed into the list of new energy vehicles exempted from vehicle purchase tax ahead of December 31st of 2020 will continue to be exempted from vehicle purchase tax.
In the January-March quarter, the production and sales of new energy vehicles came to 105,000 units and 114,000 units, down 60.2 percent and 56.4 percent year on year, as SteelOrbis reported earlier.