China: Extension of 4 Years for Clean Vehicle Policies
This page is translated from the original post "Chine : prolongation de 4 ans des mesures pour voitures propres" in French.
- 23/06/2023 17:24
During a press conference, Vice-Minister of Finance Xu Hongcai stated that Chinese consumers who purchase a green vehicle in 2024 and 2025 will not have to pay any purchase taxes.
An initiative that amounts to around 520 billion yuan, or approximately 66 billion euros, said the Vice-Minister of Finance of China.
A tax cut by half
This extension of measures related to the future of electric vehicles is intended to boost electric car sales. Chinese buyers who choose to purchase a new electric car between 2024 and 2025 will be exempt from purchase taxes.
However, starting January 1, 2026, taxes will be applied until December 31, 2027. These same taxes will be halved, decreasing from 30,000 yuan, which is equivalent to €3,805.59, to 15,000 yuan, or €1,902.79.
A constantly growing market
The electric vehicle market is still performing well in China. In fact, in 2022, the country sold more than 480,000 EVs out of a total of 1,780,000 vehicles. Furthermore, sales of electric cars grew by 48% in just one year.
But not entirely
However, this booming sector is facing difficulties. It is struggling due to the country’s economic slowdown. Why? There are three main reasons. First, the labor market is in great trouble, mainly due to the COVID-19 crisis. This leads us to the third reason: consumption.
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