2nd ICAI 2022

International Conference on Automotive Industry 2022

Mladá Boleslav, Czech Republic

The government of China is attempting to achieve its goals using various instruments, the most important of which are subsidies for the purchase of new NEVs and requirements placed on the producers of automobiles. The following table is a brief overview of China’s measures for supporting electromobility. Table 1: Measures of the Chinese Government to Support New Energy Vehicles Type of Measure Measure Description

China’s vehicle purchase tax is 10 percent of the price of the vehicle before value-added tax for domestically produced vehicles and 10 percent of the price of imported vehicles. China’s Ministry of Industry and Information Technology has issued an “NEV Catalogue,” a list of automobiles that are eligible for exemption from the purchase tax. Currently the exemptions from tax are in place to the end of 2022, but it is expected that they will be extended (CnEVPost, 2022). The main incentive for purchase of electric vehicles in China since 2009 has been government subsidies for purchase of electric vehicles. These can amount to RMB 66,000 (EUR 9,000). They have been reduced in the last few years. For 2021 they were reduced to RMB 14,400 (EUR 2,000), for 2022 by another 30 percent, and they will be phased out entirely by the end of 2022 (Zhang et al., 2021). The chance of obtaining a license plate in many Chinese cities through the traditional lottery system is very low. From 2016, China has begun to issue “green” license plates for NEVs, for which the probability of obtaining one is much higher. (Argus, 2021) Cars with internal combustion engines are prohibited from entering the centers of some cities on days when air pollution is high. This prohibition does not apply to NEVs. The main goal of CAFC regulations is to support energy saving technology and reduce the consumption of fuels. If a manufacturer of autos on the Chinese market exceeds imposed weight-based fleet consumption limits they can be fined. According to the so-called Dual-Credit Regulation, CAFC credits are given based on corporate average fuel consumption and target values. The target value for a car manufacturer is the average target value of all vehicles, which is based on the industry segment the vehicle belongs to. The NEV credit for a manufacturer is the difference between its total NEV credits and its target value for NEVs. CAFC and NEV points are tradeable. Fines are imposed on manufacturers who end the year with negative points. (Ye et al., 2021) Companies that want to manufacture NEVs in China must obtain production and sales authorizations from the National Development and Reform Commission and the Ministry of Industry and Information Technology.

Tax Exemptions for Acquisition of Vehicles

Financial Measures for Citizens

Subsides for Vehicle Purchases

Special License Plates

Non Financial Measures for Vehicle Operators

Prohibitions on Entry of Vehicles into Cities

Corporate Average Fuel Consumption (CAFC)

Require ments for Vehicle Manufac turers

CAFC and NEV Credits

NEV Manufacturing Licences

Source: GIZ: The E-Mobility Race and China’s Determination to Win

99