In an effort to boost slowed auto sales growth, the Chinese government has announced a $72.3-billion package of tax breaks over four years for buyers of electric vehicles (EVs).
Over the last year, decreased sales growth in the world’s biggest auto market have impacted China’s economic growth and stalled consumer spending.
At the start of the year, China vowed financial support to promote the internal auto industry, which immediately upgraded vehicle stocks.
“The extension by another four years beat market expectations,” Cui Dongshu, secretary general of the China Passenger Car Association, said at the time.
Under the new scheme, new energy vehicles (NEVs) purchased in 2024 and 2025 will be exempt from sales taxes, which could amount to savings for consumers of up to $4,170 per vehicle.
