China extends tax rebate for electric cars, hybrids
China will extend a tax rebate on purchases of electrified vehicles through 2020, a boost for hybrid and electric vehicle makers amid a shift by policymakers away from the traditional internal combustion engine.
The finance ministry said the tax rebate, which was to expire on Jan. 1, will be extended until Dec. 31, 2020. Eligible models will include all-electric cars, plug-in hybrids and fuel cell vehicles.
The ministry’s statement provides official confirmation of a report by Bloomberg last month that the incentives would be extended. Bloomberg cited unnamed sources.
The extension comes as automakers brace to meet strict EV quotas that will take effect in 2019. The new rules have sparked a flurry of electric-car alliances between global and Chinese automakers.
Some global automakers have called on China to maintain its incentives, citing fears that consumer demand alone will be insufficient to drive sales.
The Ministry of Finance said the extension would help “increase support for innovation and development in new-energy vehicles.”
Chinese automakers such as BYD Co. are jostling with global rivals in the race to develop EVs.
Auto sales in China have leveled off, but EVs have been a bright spot. From January through November, EV sales in China jumped 51 percent and are on track to hit an annual sales target of 700,000 vehicles.
The ministry’s statement provides official confirmation of a report by Bloomberg last month that the incentives would be extended. Bloomberg cited unnamed sources.
The extension comes as automakers brace to meet strict EV quotas that will take effect in 2019. The new rules have sparked a flurry of electric-car alliances between global and Chinese automakers.
Some global automakers have called on China to maintain its incentives, citing fears that consumer demand alone will be insufficient to drive sales.
The Ministry of Finance said the extension would help “increase support for innovation and development in new-energy vehicles.”
Chinese automakers such as BYD Co. are jostling with global rivals in the race to develop EVs.
Auto sales in China have leveled off, but EVs have been a bright spot. From January through November, EV sales in China jumped 51 percent and are on track to hit an annual sales target of 700,000 vehicles.
