China extends new energy vehicle subsidy

New energy vehicles are going to continue to be exempted from purchase taxes from January 1, 2018 to December 31, 2020, according to an announcement jointly made on Wednesday by China's Ministry of Finance, State Administration of Taxation and other departments, reports cnstock.com.

A person accepts a vehicle plate designed especially for new energy vehicles in Changsha, Hunan Province on December 25, 2017. [Photo: VCG]

This is an extension of a subsidy program first launched on September 1, 2014. The move comes as authorities prepare to ultimately ban the sale of gas or diesel powered vehicles. Authorities are now working on developing a timetable for that ban.

Data from the China Association of Automobile Manufacturers shows both the production and sales of new energy vehicles between January and November grew by around 50% compared the same period in 2016. Manufacturers in China put out 639,000 new energy vehicles through the first 11 months, while 609,000 of those vehicles were sold across the country.