China is taking its plug-in car incentives to the next level. The government will inject 520 billion yuan into tax breaks for new energy vehicles to bolster sales, which briefly showed signs of slowing down earlier this year.
The credit will extend to NEVs bought in 2024 and 2025, amounting to as much as 30,000 yuan per vehicle, reported. The Chinese Ministry of Finance stated that cars purchased in 2026 and 2027 can qualify for half the amount, as the exemption will be capped at 15,000 yuan . The new four-year package will continue extending to all-electric vehicles, plug-in gas-electric hybrids and hydrogen fuel-cell vehicles. Vice Minister of Finance Xu Hongcai stated in a press briefing that cumulative NEV tax breaks amounted to more than 200 billion yuan as of 2022. The 520 billion yuan package is the biggest ever, he added.
For more than a decade, China pumped billions of dollars into its EV expansion plans, which gave rise to what is now the world’s largest electric vehicle market. However, the subsidies expired at the end of 2022.
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