China tax boost for electric cars
Undated photo of a New Energy Vehicle. [Photo: IC]
China's tax rebate for hybrid and electrically powered vehicles has been extended until 2020.
The news will be seen as a further boost for the rapidly growing New Energy Vehicle (NEV) market in China.
Car companies such as Ford, Toyota and VW have all revealed plans to invest billions of dollars into designing and manufacturing NEVs in China, together with local partners.
The extension of the tax rebate, until the 31st December 2020, will provide an added financial incentive for this investment, and for consumers to purchase the vehicles.
The extension of the tax breaks won't just be of benefit to Western car makers.
Chinese firms have a growing specialisation in electric vehicle technology.
This expertise is beginning to bring benefits not just in China, but in cities around the world.
For example, the Chinese-owned London Electric Vehicle Company is already selling the most environmentally friendly London taxi ever, with technology that could in the future be used in delivery vans and domestic cars, too.
From 2019, strict new rules in China will come into effect, encouraging a greater number of environment friendly vehicles to be sold in place of diesel and petrol cars.