Following a cabinet meeting chaired by China Premier Li Keqiang, the country will extend an exemption of purchase tax for New energy vehicles (NEV) amid the deployment of several measures to boost demand, state media reported on Friday.
(article being updated)
In addition, China’s cabinet asked local governments to increase the number of car quotas and loosen restrictions on car purchase qualifications in a bid to boost car consumption.
Furthermore, the country aims to support rigid demand for first homes or better homes. To encourage local governments to provide appropriate subsidies for green and smart home appliances.
As the biggest NEV market in the world, China sold 568,000 units in June, an increase of 33% month-over-month and accounting for 63% of the global market.
In the first half of the year, the second biggest EV maker BYD — which is backed by Warren Buffett — sold a total of 323,519 fully electric vehicles accounting for 50.5% of its total sales of 641,350 new energy vehicles (NEV).