The Chinese government has moved to further bolster sales of electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs) with the announcement of a ¥520 billion (£56.5bn) tax-relief package.
To be spread across four years, the new measures are aimed at encouraging new vehicle buyers in China to choose EVs and PHEVs over conventional internal combustion engine (ICE) models and used vehicles by offering an exception on purchase tax, which currently stands at 10%.
Under the new measures in China, buyers of so-called new energy vehicles (NEVs), which include EVs and PHEVs, will be entirely exempted from purchase tax in 2024 and 2025, amounting to saving of up to a limited ¥30,000 (£3260) per vehicle.
Starting in 2026 and extending through 2027, the tax exemption will be reduced by 50%.
