Tax Breaks Continue For Over 90% Of China's NEVs

According to new technical requirements unveiled recently, more than 90% of China's existing new energy vehicle (NEV) models will continue to receive tax breaks on purchases.

The technical requirements for NEV eligibility for purchase tax exemptions beginning in 2024 state that pure electric cars must have a driving range of at least 200 kilometers per charge, while plug-in hybrid cars must be able to run at least 43 kilometers on electricity, according to a statement from the Ministry of Industry and Information Technology.

Reuters reported that the new rules allow electric vehicles (EVs) with battery swapping capabilities to qualify for tax breaks and mandate that EVs have a range attenuation rate of no more than 35% in cold weather.

China, hoping to spur auto sales growth, unveiled in June a 520 billion yuan ($72.41 billion) package of tax breaks over four years for electric vehicles (EVs) and other green cars. This is the largest tax break package for the industry.