China Takes Further Measures to Expand Automotive Consumption

With the approval of the State Council, local governments and departments will improve fiscal support policies for the purchase of new-energy vehicles. New-energy vehicle purchase subsidy policies will be extended until the end of 2022 and steps will be taken to ease the intensity and pace of subsidy cuts in 2020-2022 and speed up the liquidation of subsidy funds. The promotion and application of new-energy vehicles in urban transportation and other fields will be accelerated. The preferential policy of exempting new-energy vehicles from vehicle purchase tax will continue until the end of 2022. The scrapping of old diesel trucks will also be accelerated.

Full details can be found in a notice on measures to stabilise and expand automotive consumption jointly issued by 11 authorities, including the National Development and Reform Commission, the Ministry of Science and Technology and the Ministry of Industry and Information Technology, on 28 April (Fa Gai Chan Ye No. 684 [2020]).

Source: National Development and Reform Commission