The Strategist

China plans to extend tax incentives for electric cars

07/08/2022 - 10:53

Chinese officials unveiled a number of new initiatives to increase consumer demand for automobiles, including plans to expand tax advantages for electric vehicles, develop more charging stations, and promote lower charging rates.

Ivan Radic
Ivan Radic
Shares of Chinese automakers rose after the plans were revealed by the Commerce Ministry in a joint statement with 16 other authorities. Shares of Geely, for instance, increased by 6%, and those of Great Wall Motor, by 4%.

A harsh lockdown in Shanghai and other regions of the nation in recent months to tackle the omicron strain COVID-19 has negatively impacted the world's largest auto market.

Last month, authorities reduced the car purchase tax for vehicles under 300,000 yuan ($45,000) with engines up to and including two liters by half, to 5 percent, as part of the new initiative.