Japanese media claims that the 10% purchase tax exemption for China's new energy vehicles will be extended until 2020

Japanese media said that China’s relevant departments are studying to extend the deadline for the implementation of new energy vehicle purchase tax exemption measures that should have expired at the end of this year. This tax-free measure is one of the important reasons to help China become the world's largest market for new energy vehicles. With the extension of the preferential time frame, the country's new energy automotive industry may further accelerate its development.

According to a report by the Fuji Industrial Business Daily on December 6th, relevant sources revealed that the Chinese government plans to extend the 10% purchase tax exemption for new energy vehicles including electric vehicles, hybrid vehicles and fuel cell vehicles. By 2020.

Reported that in 2015, China surpassed the United States to become the world's largest market for new energy vehicles. Last year, sales of new energy vehicles in the country increased by 53% year-on-year and surged to 50.07 million. According to statistics from the China Association of Automobile Manufacturers, the existing amount of new energy vehicles in the country has exceeded 1 million, which is more than three times that of 2015.

According to reports, the expansion of demand has also become an incentive for foreign companies such as German Volkswagen and Ford Motor Co. to increase investment. US Tesla is also studying the establishment of a factory in China. Overseas car companies are still willing to invest.

Professor Wang Yunshi, director of the China Energy and Transportation Center at the University of California, Davis, analyzed that: “The Chinese government is making great efforts to popularize new energy vehicles. If it fails to reach the set target, it will surely introduce further measures. Once the tax exemption stops, the Both existing manufacturers, whose efficiency is weaker than those who enter the Chinese market, will suffer a heavy blow."

Therefore, the Chinese government has continuously introduced policies related to new energy vehicles. In September, China announced that it has begun research on the prohibition of the production and sale of gasoline and diesel vehicles. As the world’s second largest economy, China proposes to cut carbon dioxide emissions by 2030 and contain severe air pollution has also become a major issue for China. For this reason, China is stepping up its efforts to prohibit petrol and diesel fuel following the British and French regulations. The schedule for the goal of the car.

In addition, there is news that the Chinese government will reissue the electric vehicle production license that was temporarily suspended in the first half of 2018. Once restarted, it will open the way for the production of electric vehicles for foreign manufacturers such as Ford and Tesla as well as Chinese local car companies. A joint venture between Ford and Anhui Zhongtai Automobile plans to apply for the construction of a factory that will produce 100,000 electric vehicles per year. Foreign companies such as Ford and Volkswagen are also studying their own EV strategies for the Chinese market with reference to China's stringent emissions and fuel consumption standards.

According to the report, the Chinese government has approved 15 electric vehicle production projects since March 2016. The joint venture company of the largest auto parts manufacturer in China, Vientiane Group and the public has obtained a permit. With the relaxation of supervision, the auto industry, which has been dominated by state-owned enterprises, will also accelerate competition. Some smart TV and air-conditioning companies have already entered the auto industry.

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