$72.3 billion tax incentive from the Chinese government on electric vehicles. The Ministry of the Treasury of the People’s Republic of China a few weeks ago announced a new tax incentive package of $72.3 billion (520 billion yuan) for electric vehicles. The ministry, which has been applying vehicle purchase tax incentives to electric vehicle sales since 2014, announced that it will once again extend the support that will expire on 31 December 2023.

In China, where growth in automobile sales slowed due to an incentive package that ended last year, electric vehicle sales in 2024 and 2025 will be exempt from the purchase tax of 30,000 yuan (~$4,170). A 50% discount will be applied in 2026 and 2027.

China, where electric vehicles have a 30% market share with plug-in hybrids, aims to increase its electric sales to a market share of more than 50% by the end of 2025, thanks to the big four-year incentive package exceeding $72 billion.