China is extending the tax exemption on the purchase of NEV vehicles until the end of 2023, which should be beneficial for cars that make it to the list. Previously, Tesla vehicles were eligible for the benefit, so there is every reason to believe this will happen again.
On September 26, China's Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology (MIIT) announced that the purchase tax exemption policy for new energy vehicles (NEVs) will be extended to the end of 2023. 2023 purchases of specific NEVs will added to the official list. A list of vehicles that may qualify for this policy will be published soon, but no exact date has been announced. The statement said the move is aimed at supporting the development of the NEV sector and stimulating demand for their purchase.
The same tax policy in relation to NEVs has already been extended twice and was supposed to end of 2022. However, the government has again decided to support the sector, which will help the introduction of NEVs and make China the biggest market for them. In addition, it encourages many car companies to continue to invest in the country to continue to develop there.
Tesla Model 3 and Model Y should be on the list, as they have been in the past. Therefore, there is reason to believe that Tesla will remain the main beneficiary of this policy. After the Giga Shanghai production facilities were upgraded, Tesla was able to significantly increase the number of units produced at the factory. According to unconfirmed reports from various sources, Giga Shanghai is preparing to deliver between 80,000 and 100,000 vehicles in September. Any of these figures would be a strong achievement for the manufacturer.
The NEV sector in China continues to grow rapidly. From January to August, NEV vehicle production was 3.97 million units and sales reached 3.86 million units.
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