23/04/2020
BEIJING (Reuters) – China will cut its subsidies on new energy vehicles (NEV) by 10% this year, and will expand government purchases of NEVs, the finance ministry said on Thursday.
China will in principle cut such subsidies by 20% in 2021 and 30% in 2022, the finance ministry said in a statement. However, it will not cut subsidies on qualified new energy commercial vehicles earmarked for public purposes this year.
Under the plan, China would extend subsidies for NEV purchases to 2022, rather than ending them this year, and extend their purchase tax exemption for two years.
China will slightly lift the requirements for the driving range and power efficiency of cars qualified for the subsidies, the statement said, adding authorities will support the sales of cars with swappable batteries, a technology that has been pursued by Chinese electric vehicle makers Nio Inc (NIO.N) and BAIC BluePark (600733.SS).
Only passenger cars cheaper than 300,000 yuan (34,330.23 pounds) will be offered subsidies, it said. The price is higher than starting price of Tesla Inc’s (TSLA.O) China-made Model 3 sedans.
China also said authorities will give priority to purchase new energy vehicles for government use but did not give further details.
The new policy is effective from April 23. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles.
China has set an aggressive goal for NEVs to account for a fifth of auto sales by 2025 compared with the current 5%, as it seeks to reduce pollution and cultivate homegrown champions.
Sales of NEVs, however, contracted for a ninth month in a row in March and were down over 50% from a year earlier, according to data from the China Association of Automobile Manufacturers (CAAM).
Source: Reuters
Posted in 10, 20%, 2021, 2022, 2025, 30, 50%, according, account, aggressive, April, auto sales, BAIC BluePark, batteries, battery-powered electric, cars, champions, cheaper, China, China-made Model 3, Chinese, commercial vehicles, compared, contracted, cultivate, current, cut, Data, down, driving, earlier, earmarked, effective, efficiency, electric vehicle makers, ending, exemption, expand, extend, fifth, Finance Ministry, from, goal, Government, higher, homegrown, However, in a row, in principle, lift, March, month, new, new energy vehicles (NEV), ninth, Nio Inc, offered, only, passenger, plug-in hybrid and hydrogen fuel-cell vehicles, policy, pounds, power, price, public purposes, purchase tax, purchases, pursued, qualified, range, reduce pollution, requirements, Sales, sedans, slightly, starting price, statement, subsidies, swappable, Technology, Tesla Inc’s, this year, Thursday, to cut, two, Uncategorized, year, years, yuan |
Leave a Comment »
30/08/2019
BEIJING (Reuters) – China will exempt Tesla Inc’s (TSLA.O) electric vehicles (EV) from purchase tax, the Ministry of Industry and Information Technology (MIIT) said on its website.
China currently levies a 10% purchase tax on the sale of each vehicle. The move could reduce the cost of buying a Tesla car by up to 99,000 yuan ($13,957.82), according to a post on Tesla’s social media WeChat account.
Tesla’s pre-market share price jumped more than 5% after the announcement.
Sixteen variants – all the Tesla models sold in the country – are listed on the document issued by MIIT, including Model S, X and 3. No reason was given for the decision to exclude the cars from the tax.
The U.S. EV maker is building a plant in Shanghai, the firm’s first overseas factory.
It is due to start production by the end of the year and Tesla has said it should be able to build 3,000 Model 3 vehicles a week in its initial phases.
The plant is slated to have annual output capacity of 250,000 vehicles after production of the Model Y is added.
Source: Reuters
Posted in Beijing, Building, China alert, electric vehicles (EV), exempt, MIIT, Ministry of Industry and Information Technology (MIIT), overseas factory, Plant, purchase tax, Shanghai, social media, Tesla cars, Tesla Inc (TSLA.O), Uncategorized, WeChat |
Leave a Comment »
CHINDIA ALERT: You'll be living in their world, very soon 