China reportedly extending EV lure

By Graeme Roberts | 4 December 2017

Would be electric vehicle owners in China look like getting more incentive to buy.

Bloomberg, citing unnamed sources, reported China was planning to extend a tax rebate on the purchase of new energy vehicles after the incentive helped the country become the world's biggest market for such models.

The 10% purchase tax on new energy vehicles will be exempt at least to the end of 2020, the news agency's sources said, extending a deal due to expire at end of this year. The government did not respond to a request for comment.

Bloomberg said sales of NEVs surged 53% to 500,700 units last year and boosted the overall ownership of such vehicles in the country to over 1m units, triple the 2015 volume.

Bloomberg, also citing anonymous sources, last month reported the government was also considering a resumption of new permits to make electric vehicles as early as the first half of 2018, a move that would clear the way for Ford and Tesla as well as a string of local manufacturers to start production.