China car times
As electric vehicles sales remain weak, China is considering adding new measures to entice buyers into buying electric and plug-in hybrid vehicles.
It wasn’t long ago that the Chinese government backed away from its plan to gradually reduce EV subsidies (instead opting for much less steep reductions over the next few years). It now appears that the government intends to add more icing to the cake in the form of tax breaks. According to Ma Kai, Vice Premier in the State Council, the Chinese government is considering excepting all “new energy” vehicles from the 10% vehicle purchase tax that normally accompanies the purchase of a new vehicle. This tax cut would come in addition to efforts to further extend the subsidies beyond the Dec 31st end date. More details are due to be released in the coming months.
The 10% tax reduction certainly wont hurt the adoption of alternative energy vehicles in China, but likely will do little to spur demand either. China desperately needs a dramatic and well-publicized effort to roll out a comprehensive national network of charging stations if the government truly seeks to bring electric vehicles to the market in large numbers.
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