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China is on the verge of extending a tax rebate on purchases of new-energy vehicles or NEV for short until the end of 2020. It’s going to be a boost for electric and hybrid car makers amid a shift by policy-makers away from the conventional internal combustion powerplant.
As the finance ministry told on Wednesday the tax exemption that was set to expire at the end of 2017, is going to run from January 1, next year until December 31, 2020 for plug-in petrol-electric hybrid, electric as well as fuel-cell powered cars.
The extension emerged as Chinese car makers brace to meet severe NEV quotas starting in 2019, which are sparking a flurry of electric vehicle deals as well as new launches of electric and also hybrid models.
China's car market, which is the world's largest one, has slowed steeply in 2017, although new-energy vehicles have appeared to be a bright spot – their sales managed to leap 51.4% in this Asia country.
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