After the rapid increase in sales of electric vehicles in China in recent months, the market seems to start time. The economic context obviously plays a particularly important role in this market, and to stimulate it again, The China Government has just decided to continue tax benefits to buy electric and hybrid vehicles by the end of 2027.

The Chinese who acquire this type of vehicle in 2024 and 2025 will be exempt from purchase taxes. From 2026 to December 31, 2027, these taxes will be halved.

This event is about 520 billion yuan (66 billion euros) in the form of exceptions, said Sui Hunkai, one of the Deputy Minister of Finance, during a press conference.

The market under the drip?

Over the past few years, the Chinese market of electric and hybrid vehicles survived enormous growth, mainly supported by financial incentives to purchase.

This, in particular, has led to, to put it mildly, comic situations such as it is a huge cemetery of new electric vehicles that you recently discovered YouTuber. Some Chinese manufacturers would use state assistance to produce more cars, much more than demand, and thus increase their sales at the same time.

At present, this sector is weakened by the slowdown in the economy, sluggish labor market and poor consumption, despite the abolition of medical restrictions related to the Covid-19, at the end of 2022. Remember that China’s automotive industry creates many jobs and is an important nutrient environment. In 2021 It was one of the driving forces of economic recovery after the first wave of the Covid-19 pandemic.

China fully uses electricity

According to the Federation of manufacturers of cars of China (CPCA), last year sales of electric and hybrid cars have increased almost twice, they account for more than a quarter of cars sold, which is a record indicator for the whole time.

In order to further develop this sector, China plans to build more stations for charging electric vehicles, including in rural areas. The purpose is to provide wide coverage by 2030 to support the development of vehicles on new energy.