China is accelerating its commitment to support green vehicles by rolling out a massive $72 billion tax break scheme over the next four years. The government’s new policy extends a purchase tax exemption for new energy vehicles (NEVs) until the end of 2027, a move that is expected to bolster slower auto sales growth while supporting the transition to cleaner energy sources.
The tax breaks are applicable to a broad range of NEVs, including electric and hydrogen fuel cell vehicles. China, the world’s largest automotive market, has seen a surge in demand for these vehicles, and the new policy aims to further fuel this momentum.
By providing substantial tax incentives, China is not only encouraging the adoption of green vehicles among consumers but also supporting local auto manufacturers like Li Auto Inc, who are at the forefront of NEV innovation and production.
This significant financial boost in the form of tax breaks underscores China’s determination to reduce its carbon emissions and solidify its leadership position in the global green vehicle market.
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