China’s economic planning engine is taking steps to incentive new car purchases, particularly of electric vehicles..
The country’s National Development and Reform Commision, which serves as its primary economic planning agency, announced a series of 10 steps to make EVs more accessible, including lowering costs for electric vehicle charging and the extension of certain tax breaks. The NDRC did not disclose specific tax figures, however.
Other priorities for the NDRC include encouraging local governments to raise annual car purchase quotas, phasing out gasoline-powered vehicles, bolstering EV facilities and improving the power, among others.
Car sales in China increased 3% to 9.52 million vehicles in the first half of 2023 compared to 2022. Sales of EVs and plug-in hybrids jumped 37% to 3.1 million vehicles, while traditional combustion engine car sales fell 8%.
The news had a relatively modest impact on automaker stocks in the country. The biggest riser has been Brilliance China Automotive, shares of which gained 2% on the Hong Kong Stock Exchange.
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