BEIJING: China on Thursday night announced a number of new steps to encourage consumer demand pertaining to cars, saying it might consider extending the tax break pertaining to electric vehicles and outlining plans to build more charging stations and encourage reduce charging fees.
The plans, announced by the Ministry associated with Commerce as part of a joint statement with 16 other departments, boosted shares of Chinese automakers, along with Geely surging 6% and Great Wall Motor rising 4%.
The tour’s largest car market has been hit difficult in recent months by stringent lockdowns in Shanghai and other parts of the country to curb the spread of the Omicron coronavirus variant.
Included in the new efforts, authorities last month halved the auto purchase tax to 5% for cars costed under 300, 1000 yuan ($45, 000) with 2 . 0-litre or smaller engines.
Buyers of certain fully electric powered and partly electrical vehicles have not had to pay the purchase tax since 2014. A plan to reinstate it next year might now be scrapped, the ministry said, credit reporting a stance first flagged last 30 days by the country’s cupboard.
The halving of the tax has helped the market come back with June traveler car sales jumping 22% from a 12 months earlier to 1. 9 million units, according to preliminary data from an auto association.
EV sales jumped 130% to 546, 000 units final month, accounting for nearly 30% of overall vehicle sales. Sales for market innovator BYD Co Ltd more than tripled to 134, 000.
The commerce ministry statement did not make a mention of any expansion of subsidies to get what China phone calls new energy automobiles – a programme that has been credited with supercharging the sector’s growth.
Reuters reported in May that authorities were within talks with auto manufacturers about extending the programme.
The ministry also said it would encourage the particular replacement of older automobiles, increase credit assistance for car buys and remove obstacles to selling second-hand cars across various provinces. – Reuters