Image: Tesla
Follow Verum News on Twitter
Tesla cars in China have a lot of fans. The brand’s success will continue in the coming years as the country has extended its NEV tax breaks for another four years.
China extends NEV tax breaks until 2027
China has decided to extend the exemption for new energy vehicles (NEV), which was originally supposed to expire by the end of this year. On Wednesday, China’s Ministry of Finance announced the details of the policy.
The NEV purchase tax exemption will apply to vehicles purchased between January 1, 2024 and December 31, 2025. However, the tax exemption will not exceed RMB 30,000 (about $4,170) per vehicle. For NEVs purchased between January 1, 2026 and December 31, 2027, vehicle purchase tax will be retained at half the regular rate, with a cap of RMB 15,000 per vehicle.
China has boosted NEV sales since 2014
China’s policy has been focused on boosting NEV sales since 2014. NEV tax breaks had been introduced for the first time that year, and were supposed to expire by the end of 2017. This was followed by several extensions. This last time it was valid until the end of 2023.
Xu Hongcai, Vice Minister of Finance, stated at a press conference that the vehicle purchase tax exemptions will total RMB 520 billion from 2024 to 2027.
Tesla cars will again receive support from this policy. While many Chinese will indeed prefer cheaper NEVs, there are also many who will opt for Tesla vehicles. The manufacturer has already lowered the price of its vehicles, making them very attractive, and the additional price reduction will only further stimulate consumer interest.
Verum News 