China says revised NEV tax incentives ensure 90% eligibility for EVs

investing.com:

China's industry ministry announced Monday that over 90% of the country’s existing new energy vehicle (NEV) models will maintain eligibility for tax incentives on purchases, thanks to updated technical criteria.

According to a statement from the Ministry of Industry and Information Technology, the technical criteria for new energy vehicle (NEV) eligibility for purchase tax exemptions starting in 2024 stipulate that pure electric cars must possess a minimum driving range of 200 kilometers per charge, while plug-in hybrid cars should have a capability of running at least 43 kilometers solely on electricity.

Under the new regulations, electric vehicles must maintain a range attenuation rate of no more than 35% in low temperatures, and EVs equipped with battery swapping capabilities are also eligible for the tax breaks.

Back in June, China introduced a substantial package worth 520 billion yuan ($72.41 billion) allocated over four years, offering tax breaks for EVs and other environmentally friendly vehicles. This incentive marks China's most significant effort to date in stimulating growth in auto sales within the industry.