China has announced a significant tax rebate upon the purchase of new-energy vehicles (NEVs) until the end of 2020 in an extension of the country’s policy to move away from the internal combustion engine.
The Chinese Ministry of Finance announced last month that the rebate will run until 2020 for all electric, plug-in hybrid and fuel-cell vehicles.
China is aiming to hit rigorous NEV quotas starting in 2019, consequently attracting a spate of electric car sales and new launches of non-ICE models throughout the country.
Non-Chinese automotive OEMs have lobbied China to maintain financial support for the automotive industry, stating factors such as customer demand which is not sufficient to drive sales without state-backed incentive schemes.
The finance ministry said the extension would “increase support for innovation and development in new-energy vehicles,” an area where China is hoping to catch more established global rivals.
Chinese automakers such as EV specialist BYD are now competing with well-known auto-manufacturers like Nissan and Ford as it aims to develop new models for the Chinese market.
BYD representatives have attended Formula E races in the past, and were known to have held discussions with at least one team in 2015 about a potential partnership.
A Chinese Formula E race to add to the existing Hong Kong E-Prix is being considered for the fifth season in 2018/19.
Formula E currently has two Chinese entered teams in NIO and Techeetah. The former launched its new NIO ES8 SUV just before Christmas, following the NIO EP9 all-electric hypercar which broke cover earlier in 2017 [pictured above].
Almost 500,000 Plug-Ins Registered
China has registered 490,000 plug-in passenger cars from January to November 2017, making it by far the largest market for NEVs.
Battery-electric vehicles head the list, increasing 5 percent to make up 81 percent of all NEVs on the road.
The Chinese Government has announced ambitious NEV share mandates of 8 percent for 2018, 10 percent for 2019 and 12 percent for 2020.
The Government will also will extend a tax rebate on purchase of new-energy vehicles until the end of 2020. This is an extension of the policy announced in 2015 to move away from ICE vehicles in the future.
Source: China Daily