China invests 66 billion euros to support the electric vehicle market

Clear ambitions for electric vehicles in China

No more doubt about China's ambitions for electric vehicles. The government recently announced an investment of an additional 520 billion yen (66 billion euros) to accelerate the sale of clean cars.

Measures to promote clean vehicles

As part of this plan, electric cars, plug-in hybrids and those running on hydrogen are concerned. Xu Hongcai, vice minister of finance in China, said the purchase tax exemption for clean vehicles would be extended until at least the end of 2027.

66 billion euros to boost sales in China

In 2024 and 2025, buyers will be completely exempt from the 10% purchase tax. Then, in 2026 and 2027, this tax will be exempted up to 50%. A new package capped at 30,000 yuan (3,800 euros) per vehicle. Aid that should enable the country to achieve its objectives.

China shows promising results

In 2022, sales of electric and hybrid cars accounted for more than a quarter of vehicles sold in China, according to the China Federation of Individual Car Manufacturers (CPCA). This new plan therefore aims to stimulate the growth of models produced by Chinese manufacturers.

A major measure to support clean vehicles

This new measure is the largest ever taken by the Chinese government to support clean vehicles. The extension of the aid aims to compensate for the drop in demand on the domestic market at the start of the year, encouraging manufacturers to lower their prices to stimulate sales.

Tax breaks encourage adoption of clean vehicles

The tax breaks, first introduced in 2014, aim to encourage Chinese consumers to choose clean vehicles over internal combustion vehicles. This strategy has paid off, making China the world's largest automotive market for electric vehicles.