Category: Policy

BREAKING: China extends NEV purchase tax exemption until end of 2025

(Image credit: CnEVPost)

China today released details of its policy to extend the purchase tax exemption for new energy vehicles (NEVs), clarifying the timeline for the policy's withdrawal.

China will exempt the purchase tax on NEVs with a purchase date between January 1, 2024, and December 31, 2025, but the tax exemption will not exceed RMB 30,000 yuan per vehicle, according to an announcement issued today by China's Ministry of Finance.

For NEVs with a purchase date between January 1, 2026 and December 31, 2027, the vehicle purchase tax will be reduced by half, with the tax reduction not exceeding RMB 15,000 per vehicle.

China NEV insurance registrations for week ending Jun 18: Tesla 14,500, Li Auto 7,800, NIO 2,000

The post BREAKING: China extends NEV purchase tax exemption until end of 2025 appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China may introduce NEV support measures soon

China's State Council Information Office will hold a briefing at 10 am Beijing time on June 21 on promoting the development of the NEV industry.

China may introduce NEV support measures soon-CnEVPost

(Image credit: CnEVPost)

China is expected to introduce policy initiatives to promote the "high-quality development" of the new energy vehicle (NEV) industry in recent days, local media China Securities Journal said in a report today.

The report did not mention details about the possible policies.

A notice posted on the website of China's State Council Information Office today shows it will hold a regular briefing at 10 am Beijing time on Wednesday, June 21, to introduce the promotion of "high-quality development" of the NEV industry and answer reporters' questions.

China's current policy to support the NEV industry is mainly the exemption of purchase tax.

In order to support the development of energy-efficient vehicles, China first started to exempt NEVs from purchase tax in 2014.

The policy originally expired at the end of 2017, but was renewed before its expiration until the end of 2020. In March 2020, China renewed the policy again until the end of 2022.

On September 26, 2022, several Chinese government departments announced in an official announcement that the purchase tax exemption for NEVs would continue until the end of 2023.

On June 2, a Bloomberg report said that China was considering extending the tax exemption for cheaper NEVs for another four years.

One of those measures could be extending the purchase tax exemption for electric and plug-in hybrid vehicles that cost less than 300,000 yuan ($42,910), according to the Bloomberg report.

Hours after that Bloomberg report was published, state broadcaster CCTV reported that a State Council meeting mentioned that China would extend and optimize the vehicle purchase tax exemption for NEVs.

The upcoming press conference on June 21 may be related to the extension of the NEV purchase tax exemption policy.

Before this year, China also offered state subsidies for NEV purchases, and they were not renewed when they expired at the end of last year, although some local governments have offered subsidies to local residents for their purchases from time to time.

Following the withdrawal of state subsidies, growth in China's NEV industry has slowed significantly so far this year.

From January to May, retail sales of NEVs in China were 2.42 million units, up 41.45 percent year-on-year, according to the China Passenger Car Association (CPCA). For comparison, the growth rate for the same period last year was 117.21 percent.

($1 = RMB 7.1580)

China to extend and optimize NEV purchase tax exemption policy, says State Council meeting

The post China may introduce NEV support measures soon appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China launches nationwide promotions to boost auto consumption

The moves include holding auto festivals in 100 cities and promoting consumption of NEVs in rural areas.

China launches nationwide promotions to boost auto consumption-CnEVPost

(Image credit: CnEVPost)

China has launched a nationwide promotion covering the rest of the year to boost auto consumption, which is critical to economic growth.

The Ministry of Commerce (MOC) announced specific arrangements in a notice issued today on a campaign to promote auto consumption, including holding auto festivals in 100 cities and promoting new energy vehicle (NEV) consumption in rural areas.

The MOC will promote local governments and enterprises to introduce initiatives to support auto consumption, use local financial resources, and encourage financial institutions to introduce auto credit financial support measures, according to the notice.

The MOC will organize the launch of the NEV consumption season campaign in the near future and guide various NEV consumption promotion activities in rural areas.

Car companies are encouraged to launch practical models suitable for rural areas, and the MOC will coordinate and promote the improvement of charging infrastructure systems in rural areas.

The China Association of Automobile Manufacturers (CAAM) was asked to organize auto companies to participate in these activities and to introduce preferential initiatives for car purchases, according to the notice.

At the same time, the notice stressed that local government departments should do their part in reviewing fair competition for support policies, including subsidies, that are planned to be introduced to ensure they are universally applicable to all enterprises.

The campaign will run from June to December, according to the notice.

The move comes at a time of weak growth in Chinese auto sales, with the sector facing challenges after state subsidies expired at the end of last year.

China's retail sales of passenger cars rose 28.6 percent to 1.74 million units in May, up 7.3 percent from April, according to data released earlier today by the China Passenger Car Association (CPCA).

China launches nationwide promotions to boost auto consumption-CnEVPost

From January to May, China's passenger car retail sales were 7.63 million units, up 4.39 percent year-on-year.

NEVs fared slightly better, but at a significantly lower rate than last year.

Retail sales of new energy passenger vehicles in China were 580,000 units in May, up 60.9 percent year-on-year and up 10.5 percent from April, according to the CPCA.

From January to May, retail sales of passenger NEVs in China were 2.42 million units, up 41 percent year-on-year. For comparison, last year's January-May passenger NEV retail sales grew 117.21 percent year-on-year.

China launches nationwide promotions to boost auto consumption-CnEVPost

China NEV retail up 10.5% MoM to 580,000 in May, CPCA data show

The post China launches nationwide promotions to boost auto consumption appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China to extend and optimize NEV purchase tax exemption policy, says State Council meeting

China will further stabilize market expectations, optimize the consumption environment, and release the consumption potential of NEVs to a greater extent, the meeting also mentioned.

China to extend and optimize NEV purchase tax exemption policy, says State Council meeting-CnEVPost

(Image credit: CnEVPost)

China is expected to extend the tax incentives for new energy vehicles (NEVs), which will expire at the end of the year, to continue supporting the fast-growing industry.

China will extend and optimize the NEV purchase tax exemption policy, to build a high-quality charging infrastructure system, according to an executive meeting of the State Council hosted by Premier Li Qiang today.

The meeting studied policy measures to promote the high-quality development of the NEV industry, according to the content of the meeting released today by state broadcaster CCTV.

China will further stabilize market expectations, optimize the consumption environment, and release the potential of NEV consumption, according to the meeting.

NEVs are the main direction of transformation and upgrading of the automotive industry, and the development space is very broad, the meeting mentioned.

China should consolidate and expand the advantages of NEV development, further optimize the industrial layout, and strengthen key core technologies in key areas such as power battery systems, new chassis architecture, intelligent driving systems, according to the meeting.

The country will coordinate the development of domestic and international resources to improve the power battery recycling system, according to the meeting.

The foundation of China's recovery so far this year is not yet solid, and China should further stabilize expectations, boost confidence in development, stimulate market vitality and promote a sustained rebound in economic operation, the meeting mentioned.

The CCTV report did not mention what specific support measures for the NEV industry were examined at the meeting, or how long the NEV tax exemption would be extended. A Bloomberg report earlier today said China is considering extending the tax exemption for cheaper NEVs for another four years.

One of those measures could be an extension of the purchase tax break for electric and plug-in hybrid vehicles priced below RMB 300,000 yuan ($42,510), according to the Bloomberg report.

To support the development of energy-efficient vehicles, China first began exempting NEVs from purchase tax in 2014.

The policy originally expired at the end of 2017, but was renewed before it expired until the end of 2020. In March 2020, China renewed the policy again until the end of 2022.

On September 26, 2022, several Chinese government departments jointly announced that the purchase tax exemption for NEVs would continue until the end of 2023.

China mulls extending tax exemption on cheaper NEVs for another 4 years, report says

The post China to extend and optimize NEV purchase tax exemption policy, says State Council meeting appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China mulls extending tax exemption on cheaper NEVs for another 4 years, report says

China is considering extending the tax exemption for NEVs priced below 300,000 yuan for another four years to spur consumer demand, Bloomberg reported.

China mulls extending tax exemption on cheaper NEVs for another 4 years, report says-CnEVPost

(Image credit: CnEVPost)

China is considering extending the tax holiday for some NEVs for another four years, the latest report said, adding that the policy was originally set to expire at the end of this year.

China's State Council is considering extending tax exemption for some clean cars for another four years as the government seeks to spur consumer demand for new energy vehicles (NEVs), a Bloomberg report today said, citing people familiar with the matter.

China's chief administrative body will meet Friday to discuss a series of policy measures aimed at boosting economic development, the report said.

One of those measures may be extending the purchase tax break for electric and plug-in hybrid vehicles that cost less than RMB 300,000 yuan ($42,510), one of the people said, according to the Bloomberg report.

To support the development of fuel-efficient vehicles, China first began exempting NEVs from purchase tax in 2014, allowing most consumers who buy such models to save about RMB 10,000 relative to those who buy conventional fuel vehicles.

The policy originally expired at the end of 2017, but was extended until the end of 2020, and in March 2020, China renewed the policy until the end of 2022.

On September 26, 2022, several Chinese government departments said in an official announcement that the purchase tax exemption for NEVs will continue until the end of 2023.

As of November 10, China had exempted RMB 68.6 billion in purchase tax on NEVs in 2022, up 101.2 percent year-on-year, Wang Daoshu, deputy head of the State Taxation Administration, said in a November 16 news release last year.

China also previously provided subsidies for the purchase of NEVs, but they were not renewed when they expired at the end of last year.

Growth in China's NEV industry slowed significantly early this year after the subsidy policy was withdrawn.

From January to April, retail sales of NEVs in China were 1,841,079 units, up 36.16 percent year-on-year, according to the China Passenger Car Association (CPCA). For comparison, the growth rate for the same period last year was 124.23 percent.

($1 = RMB 7.0571)

China extends NEV purchase tax exemption until end of 2023 in official announcement

The post China mulls extending tax exemption on cheaper NEVs for another 4 years, report says appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China issues policy to support NEV consumption in rural areas

A government document voices support for NEV development in rural areas in terms of NEV purchases, charging infrastructure development, and consumer education.

China issues policy to support NEV consumption in rural areas-CnEVPost

(Image credit: CnEVPost)

China has released a new government document to support new energy vehicle (NEV) consumption in rural areas, after NEV penetration in major cities climbed to high levels.

China's National Energy Administration and economic planner National Development and Reform Commission (NDRC) issued the document on supporting the development of NEVs in rural areas for provincial and municipal governments and two grid operators, State Grid and Southern Grid. The document, dated May 14, was made public on May 17.

China has built the world's largest charging infrastructure, providing a strong guarantee for the rapid development of NEVs, but there are still problems in rural areas, including insufficient public charging infrastructure, which restricts the release of NEV consumption potential there, the document says.

The advanced construction of charging infrastructure and optimization of the environment for the purchase and use of NEVs are of great significance in promoting NEV consumption in rural areas, according to the document.

The document voices support for NEV development in rural areas in terms of NEV purchases, charging infrastructure construction, and consumer education.

Car companies are encouraged to develop more economical models for consumers in rural areas, especially products including new energy cargo-carrying mini-vans, mini-trucks and light trucks.

China will improve the evaluation system for used NEVs and encourage companies to provide quality vehicles for rural areas.

The country will increase the proportion of NEVs in business vehicles and encourage local governments to increase the use of NEVs in public transportation, road passenger transportation, rental cars, law enforcement, sanitation, and logistics.

Local governments are encouraged to provide consumption voucher support for local rural residents to purchase NEVs, offering trade-in incentives for them to phase out low-speed electric vehicles and purchase regular NEVs.

Credit support for auto consumption in rural areas will also be increased, and financial institutions are encouraged to reasonably determine the down payment ratio, loan interest rate, and repayment period on the premise of risk control.

In terms of charging infrastructure construction in rural areas, local governments should accelerate the construction of charging stations and strive to achieve charging piles in every township.

Local governments are encouraged to promote the construction of centralized public charging stations, and places with conditions such as gas stations should also promote the construction of charging piles.

Existing residential communities in rural areas are encouraged to carry out charging facility construction, and a certain percentage of public charging spaces should be allocated.

Before 2030, China waives the electricity capacity charge for centralized charging and battery swap facilities with a two-part tariff, and relaxes the investment efficiency constraint for grid companies in the construction of distribution grids.

China encourages research on technologies such as two-way interaction between electric vehicles and the grid (V2G), and explores the construction of integrated charging infrastructure in rural areas where the utilization rate of charging piles is low.

In terms of consumer education, China supports local governments and industry bodies to enhance consumer acceptance of NEVs and alleviate purchase and use concerns through a number of activities.

China passenger NEV retail drops 3.6% MoM to 527,000 in Apr, CPCA data show

The post China issues policy to support NEV consumption in rural areas appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China allows 6-month sales extension for some ICE models based on existing emissions standard

China will implement the China 6b emissions standard on July 1, although some models will be given a six-month sales transition period.

China allows 6-month sales extension for some ICE models based on existing emissions standard-CnEVPost

(Image credit: CnEVPost)

Chinese authorities confirmed in an official document that a new emissions standard will go into effect on July 1 as scheduled, but provided an additional six-month sales period for some internal combustion engines (ICE) vehicles based on the existing standard.

In a joint announcement issued today, five ministries, including China's Ministry of Industry and Information Technology and Ministry of Ecology and Environment, said that China will implement the China 6b emissions standard nationwide starting July 1, when the production, import and sales of vehicles that do not meet the standard will be banned.

For some of the models with "monitoring only" results in the Real Driving Emissions (RDE) test report, they will be given a six-month sales transition period until December 31, 2023, according to the announcement.

The move is to implement the requirements of the China 6 emissions standard, as well as China's policy to stabilize and expand vehicle consumption, the announcement said.

China released the final rule for Stage 6 light-duty vehicle emission limits and measurement methods (China 6 standard) in December 2016, a new standard that combines best practices from European and US regulatory requirements.

The standard is being implemented in two phases, with the 6a standard already taking effect on July 1, 2020, and the 6b standard coming into effect on July 1, 2023.

In March, price wars were the most talked about topic in China's auto industry, and the impending entry into force of the 6b standard was seen as an important factor.

On March 23, China's Auto Dealers Chamber of Commerce (CADCC) called on regulators to delay the start of implementation of the China 6b emissions standard.

Since the beginning of the year, the CADCC has received feedback from many auto dealer groups that they are under significant pressure to survive the impending full implementation of the China 6b emissions standard.

A study covering nearly 100 dealership groups showed that nearly 98.89 percent of them strongly recommended that China delay implementation of the China 6b emissions standard until January 1, 2024, the CADCC said at the time.

Notably, following the release of the latest announcement, the China Association of Automobile Manufacturers (CAAM) said in an article on its website that the new policy would help the Chinese auto market recover steadily.

Since the release of the China 6 standard, most car companies have been developing and producing products in accordance with the standard, which amounts to an early implementation of the China 6b standard, the CAAM said, adding that to date, more than 95 percent of light-duty vehicles have met the China 6b standard.

As of the end of January, there were more than 1.89 million vehicles in stock in China that did not meet the RDE requirements, and if purchased parts are included, then there are more than 2 million such vehicles in stock, the CAAM said.

The CAAM submitted a proposal for a six-month sales transition period for light-duty vehicles with "monitoring only" RDE test results to ease the difficulties faced by China's auto industry, according to the article.

"We hope that after the release of the policy, companies will uphold the principle of fair market competition, plan their layout rationally and complete the switchover and sale of their products as soon as possible," the CAAM said.

China's transition to new emission standard: How will this affect auto market?

The post China allows 6-month sales extension for some ICE models based on existing emissions standard appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China to introduce credit pool for NEV dual credit system that is expected to facilitate credit trading

Automakers can voluntarily apply for storage of positive credits when the supply exceeds demand, and release credits when the supply is less than demand.

China to introduce credit pool for NEV dual credit system that is expected to facilitate credit trading-CnEVPost

(Image credit: CnEVPost)

China will introduce a new credits trading system for the dual-credit mechanism in the new energy vehicle (NEV) industry, which is expected to facilitate credits trading between automakers.

The country has launched the second revision of its dual-credit mechanism, which will implement a credits pool management system and explore mechanisms to interact with the carbon trading market, the Shanghai Securities News said in a report today.

The 2023 annual credits report press conference was held today in Beijing, where China's industry regulators released the information, according to the report.

Under the credit pool system, automakers can voluntarily apply for storage of positive credits for NEVs when the supply exceeds demand.

The storage of positive credits collected into the pool is valid for five years. The previous carryover ratio requirement will be canceled, i.e. there will no longer be a discount for credits carried over to the next year.

When the supply of credits is less than the demand, automakers can release the stored positive credits to regulate the supply and demand in the credits market.

The trigger condition for the pool to collect and release credits is determined by the ratio of supply to demand, which refers to the ratio of positive NEV credits available for trading in the current year to the negative credits to be offset by external trading.

The Shanghai Securities News report provided no further information on this new mechanism.

China released the dual-credit policy in 2017, whose full name is "Parallel Management Measures for Average Fuel Consumption of Passenger Vehicle Enterprises and New Energy Vehicle Credits". The policy has been in effect since April 1, 2018.

Automakers that fail to meet the fuel consumption control requirements can offset the negative credits from excessive fuel consumption by generating their own NEV credits, or by purchasing credits from other companies.

If a car company is unable to bring negative credits to zero, then they will need to submit a product adjustment plan to the MIIT and set a deadline for compliance.

Until their negative credits are zeroed out, products with substandard fuel consumption cannot be sold to the public.

The policy is seen as one of the keys to promoting the rapid growth of China's NEV industry, allowing the country to reach its 2025 NEV penetration target of more than 25 percent ahead of schedule.

For the full year 2022, China's retail sales of new energy passenger vehicles were 5.67 million units, up 90 percent year-on-year, contributing 27.6 percent of all passenger vehicle sales, according to the China Passenger Car Association (CPCA).

China's 'dual credit' policy, what you need to know

The post China to introduce credit pool for NEV dual credit system that is expected to facilitate credit trading appeared first on CnEVPost.

For more articles, please visit CnEVPost.

BYD chairman calls on China to extend NEV tax exemption until 2025

The world economy is currently in a difficult period of complexity and change, and dealing with risks and challenges requires firm confidence and stable expectations, Wang said.  |  BYDDY.US | HK

(Image credit: CnEVPost)

China's purchase tax exemption for new energy vehicles (NEVs) expired at the end of last year and has been extended until the end of this year. Now, calls are starting to emerge for the policy to be renewed.

Wang Chuanfu, chairman and president of BYD (OTCMKTS: BYDDY), suggested in an April 1 speech at the China EV 100 Forum that China should extend the NEV purchase tax exemption to 2025, hoping the move would be fast-tracked to stabilize expectations, according to a video replay seen by CnEVPost.

Before 2023, China's policies to support the NEV industry include purchase subsidies as well as exemptions from purchase taxes.

NEV purchase subsidies have been reduced each year over the past several years on a set schedule and were completely withdrawn when they expire at the end of 2022.

The NEV purchase tax exemption originally expired at the end of 2017, but was renewed until the end of 2020 before it expired, and in March 2020, China renewed the policy until the end of 2022. Last year, the policy was renewed again until the end of 2023.

The world economy is currently in a difficult period of complexity and change, and dealing with risks and challenges requires firm confidence and stable expectations, Wang said, adding that many overseas countries are increasing their fiscal support for NEVs.

China's purchase subsidies for NEVs were withdrawn at the end of last year, and the exemption of NEV purchase tax has been clarified to continue until the end of this year, Wang noted.

Considering the long development cycle of NEVs, from product development and design to cost management, long-term arrangements need to be made, so he hopes the NEV purchase tax exemption policy will be extended, according to Wang's speech.

In addition to Wang, Meng Xia, head of sales for Volkswagen China, also suggested at the China EV 100 Forum event that China should extend the purchase tax exemption for NEVs beyond 2023 and develop a relatively stable policy framework.

It is worth noting that with the rapid growth of NEV penetration, the continued extension of the purchase tax exemption for such vehicles would mean a bigger loss in government tax revenue.

For the full year 2022, retail sales of new energy passenger vehicles in China were 5.67 million units, up 90 percent year-on-year and accounting for 27.6 percent of all new passenger vehicle sales, according to data released by the China Passenger Car Association (CPCA) in January.

In February, retail sales of new energy passenger vehicles in China were 439,000 units, up 61 percent year-on-year, contributing 31.6 percent of all passenger vehicle sales.

In the future, as the ownership of conventional internal combustion engine vehicles shrinks dramatically, the shortfall in national tax revenue will need to be filled by a tax system for electric vehicles, the CPCA said in a report released on August 9, 2022.

Taxing electric vehicles at the point of purchase and use and even at the point of retirement is a definite trend, the CPCA said at the time.

BYD aims to sell at least 3 million vehicles this year

The post BYD chairman calls on China to extend NEV tax exemption until 2025 appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China to allow extended sales periods for ICE models based on existing emissions standard, report says

Price war has been the most talked about topic in China's auto industry this month, and the imminent implementation of a new emissions standard is seen as a major factor.

(Image credit: CnEVPost)

The imminent implementation of a new emissions standard in three months is seen as a major factor behind the price war launched by internal combustion engine (ICE) automakers this month. Now, these automakers may be able to get some respite.

China's policy on extending the sales period for vehicles built to the 6a emissions standard may be announced soon, National Business Daily reported today, citing Shen Jinjun, president of the China Auto Dealers Association (CADA), as saying at a forum.

A government document on the switch to the China 6b standard and the extension of the sales period for 6a-compliant models will be released soon, Shen said, without revealing any more information.

China released the final rule for stage 6 light vehicle emission limits and measurement methods (China 6 standard) in December 2016, a new standard that combines best practices from European and US regulatory requirements.

The standard is being implemented in two phases, with the 6a standard already taking effect on July 1, 2020, and the 6b standard coming into effect on July 1, 2023.

During this month, price war has been the most talked about topic in the Chinese auto industry, and the upcoming entry into force of the 6b standard is seen as an important factor.

There are still some older models on the market that do not meet China 6b emissions regulations, and the de-stocking of these models could have an impact on production, sales and prices in the auto industry, a team from CITIC Securities said in a March 13 research note.

In early March, authorities in Hubei province joined forces with many local car companies to offer subsidies to consumers for car purchases, with some models being subsidized by as much as 90,000 yuan ($13,060). This was seen as the beginning of the massive outbreak of the price war.

Subsequently, several brands, including Volkswagen and BMW, announced similar large discounts. At the same time, some car companies made it clear that they would not participate in the price war, trying to dispel the wait-and-see sentiment of potential consumers.

The price war has had an unprecedented impact on China's auto industry, and on March 22, the China Association of Automobile Manufacturers (CAAM) called on all parties to return to rationality and bring order to the market.

On March 23, China's Auto Dealers Chamber of Commerce (CADCC) called on regulators to delay the implementation of the China 6b emissions standard.

Since the beginning of the year, the CADCC has received feedback from many auto dealer groups that they are under significant pressure to survive because of the impending full implementation of the China 6b emissions standard.

A study covering nearly 100 auto dealer groups showed that nearly 98.89 percent of them strongly recommended that China delay the implementation of the China 6b emissions standard until January 1, 2024, according to the CADCC.

These dealer groups suggest that regulators allow sufficient switchover time for car companies and dealers to deal with the existing inventory of vehicles that do not meet the China 6b emissions standard.

($1 = RMB 6.8906)

China's transition to new emission standard: How will this affect auto market?

The post China to allow extended sales periods for ICE models based on existing emissions standard, report says appeared first on CnEVPost.

For more articles, please visit CnEVPost.

driive.com
All about Smart and Sustainable Mobility

Archives

May 2024
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031