The extension of EV tax rebate for electric vehicles, fuel-cell cars and plug-in hybrids by Chinese authorities is a good omen for the automakers, as the move will facilitate their joint efforts aimed at securing a bright future for the EV industry and further improvements in the technology.
The EV tax rebate that had a near-to-year-end expiry date is now valid until the end of 2020.The announcement by China’s Ministry of Finance should provide the auto manufacturers, in one of the leading auto markets globally, with a strong footboard to mobilize inventory for new electric cars.
The extension of EV tax rebate in China is logical considering the stringent quotas that the automakers will need to meet as part of ‘green vehicles’ production that will begin in 2019.
The country is already geared up for a year-end sales ballpark of 700,000 green cars, as the Energy Vehicles industry is booming in China with sales of EVs and Plug-in hybrids witnessing an increase of almost 51.4% through November compared to the overall automobiles sales figures.
The extension is in line with the US decision of regulating EV subsidies to keep them in place. The decision is also aimed at stepping up technology-attributes for energy vehicles and encouraging innovative solutions for the future.