China’s Ministry of Finance announced it will extend sales tax breaks on new energy vehicles to help the country’s slowing auto sector, reported the South China Morning Post.
Buyers of battery-powered and plug-in hybrid cars will still be exempt from the 10% sales tax until the end of 2020.
Car sales have fallen off in the world’s largest auto market, partly due to weakened demand amid a slowing economy. This happens as China has made massive efforts to turn itself into the world’s leader in electric vehicles, as President Xi Jinping steps up the battle against air pollution and pushes toward innovative technology. Sales of NEVs totalled 1.26 million units in 2018, or 52% of the world’s total, making China the largest new energy car market on the planet.