Policy Landscape

Chinaʼs New Energy Vehicle NEV Policy Evolution January

February

April

Reforming NEV Insurance

Focusing on a Green Supply Chain

Standardising Future Technologies

Introduced risk-based premiums and new platforms to solve high costs and coverage gaps.

Emphasised improving NEV battery recycling to enhance the industry's competitive advantage.

Advanced new standards for AI in cars, solid-state batteries, and battery swapping.

July

August

September

Curbing Irrational' Market Competition

Exceeding National Sales Targets

Setting New Growth & Stimulus Goals

Implemented measures to monitor pricing and product consistency to ensure fair industry conduct.

The 20% market share goal for 2025 was surpassed ahead of schedule.

Announced a new 2025 sales target of 15.5 million NEVs.

Source: 中国政府网.政务, State Taxation Administration of the Peopleʼs Republic of China

Key Provisions on Vehicle Acquisition Tax Relief 20242027 Preferential Tax Policies

20242025 Full exemption from Vehicle Acquisition Tax

Cap: RMB 30,000 per NEV passenger vehicle

20262027 50% tax reduction

Cap: RMB 15,000 per NEV passenger vehicle

Acquisition date: Determined by issuance date of statutory sales or import documentation Eligible Vehicles

Vehicle types: Battery Electric Vehicles BEVs, Plug-in Hybrid Electric Vehicles PHEVs, incl. EREVs), Fuel Cell Electric Vehicles FCEVs

Passenger vehicle definition: 9 seats (including driver), designed primarily for passenger transport

Technical criteria: Jointly formulated and updated by MIIT, MOF, and STA Battery Swap Mode BSM Provision

Tax base: Vehicle price excluding the power battery where the battery is invoiced separately

Condition: Compliance with battery-swap technical standards and availability of swap services by OEM or authorized operators Administration & Compliance

Eligibility control: Model inclusion in the official NEV Tax Exemption/Reduction Catalogue

Data reporting: OEMs/importers submit validated electronic vehicle information (tax status and BSM identifiers)

Enforcement: Tax relief granted based on MIIT-validated data; violations penalized under PRC tax law

Extracted from the PDF; charts and images may read imperfectly.