Featured image: Reuters
Today, July 21, 2020, the Ministry of Industry and Information Technology of China (MIIT) published the "Catalog of Recommended Models for the Promotion and Application of New Energy Vehicles" (8th batch of 2020) on its official website. A total of 332 models, including an additional two more models produced by Tesla Giga Shanghai, were included in the recommended catalog.
MIIT had previously published a tax exemption list for the purchase of new energy vehicles, which included Tesla Model 3 Standard Range Plus. This time, the list includes TSL7000BEVBA0 and TSL7000BEVBA1. Both are equipped with lithium batteries and have a battery density of 161 Wh/kg—the long range Model 3.
Source: MIIT| @DKurac / Twitter
In terms of energy density, low-temperature performance, speed performance, etc., the overall performance of lithium-ion batteries is better than lithium iron phosphate batteries, but in terms of stability and cost, lithium iron phosphate batteries have an advantage. In the passenger cars, lithium batteries have completely replaced lithium iron phosphate batteries after a new government subsidy policy pushed higher energy consumption and battery life requirements.
The extension of tax exemptions and subsidies is a positive development for NEV manufacturers in China, even though the subsidies are smaller than before.
China is already the world’s largest NEV market, selling 1.2 million new-energy vehicles last year, and the government has ambitious plans for further growth. Government planners aim to increase NEVs’ share of new auto sales from five percent currently to 25 percent by 2025. To contribute to this goal, authorities have stated that they will prioritize purchasing NEVs when procuring vehicles for government use.
Government support through tax exemptions and subsidies, then, will help NEV manufacturers get back on track and rebound from the COVID-19 disruption. And if the government’s stimulus measures include support for NEV-related infrastructure, the industry will be set not only to recover in the short term but to flourish in the coming decade.
With the exemption from vehicle purchase tax, China-made Model 3 is even more attractive.