What conditions must new energy vehicles meet to qualify for the vehicle purchase tax exemption?
According to the Announcement on Extending and Optimizing the Vehicle Purchase Tax Reduction Policy for New Energy Vehicles (Announcement No. 10 of 2023 by the Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology), the following provisions apply: I. New energy vehicles purchased between January 1, 2024, and December 31, 2025, shall be exempt from vehicle purchase tax, with the tax exemption for each new energy passenger vehicle not exceeding RMB 30,000. For new energy vehicles purchased between January 1, 2026, and December 31, 2027, the vehicle purchase tax shall be reduced by half, with the tax reduction for each new energy passenger vehicle not exceeding RMB 15,000.
The purchase date shall be determined based on the issuance date of valid documents such as the Uniform Motor Vehicle Sales Invoice or the Customs Duty Payment Certificate.
New energy vehicles eligible for vehicle purchase tax reduction or exemption policies refer to pure electric vehicles, plug-in hybrid (including range-extended) vehicles, and fuel cell vehicles that meet the technical requirements for new energy vehicle products. The technical requirements for new energy vehicle products shall be formulated by the Ministry of Industry and Information Technology in conjunction with the Ministry of Finance and the State Taxation Administration, based on technological advancements in new energy vehicles, the development of the standards system, and changes in vehicle models.
New energy passenger vehicles refer to new energy vehicles primarily designed, manufactured, and technically characterized for transporting passengers and their personal luggage and/or temporary items, with a maximum seating capacity of 9 seats including the driver’s seat.
In recent years, China has proposed a “Energy-saving and New Energy Vehicles” strategy, with the government placing high priority on the R&D and industrialization of new energy vehicles. Under the advocacy and support of national policies, product development and demonstration promotion of energy-saving and new energy vehicles have surged across the country. In 2024, cumulative production and sales of new energy vehicles reached 12.888 million units and 12.866 million units respectively, representing year-on-year increases of 34.4% and 35.5%. New energy vehicle sales accounted for 40.9% of total new vehicle sales. From January to September 2025, production and sales of new energy vehicles reached 11.243 million and 11.228 million units respectively, representing year-on-year increases of 35.2% and 34.9%. During the same period, domestic sales of new energy vehicles totaled 9.47 million units, up 28.1% year-on-year. From January to September 2025, new energy vehicle exports reached 1.758 million units, up 89.4% year-on-year.
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