China’s fast-growing electric and hybrid vehicle market received a further boost Wednesday after the government announced that it will extend a tax rebate on purchases of new-energy vehicles until the end of 2020, Reuters reports.
The tax exemption was set to expire at the end of this year, but will now be in place until Dec 31, 2020, according to a statement from China’s finance ministry. The subsidy applies to electric, plug-in hybrid and fuel cell powered vehicles.
The extension comes as automakers in China struggle to meet strict new energy vehicle quotas starting in 2019 that are sparking a flurry of electric car deals and new launches of electric and hybrid models. The Ministry of Finance said the extension would help “increase support for innovation and development in new energy vehicles”, an area where China hopes to catch up – or even overtake – more established global automaker rivals.
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