Hong Kong To Reduce Electric Car Incentives, Tesla Sales Expected To Decline
To date, Hong Kong has been an ideal market for electric vehicle makers (especially Tesla). Why? Well, here’s your long, drawn-out answer.
But moving forward, Hong Kong may no longer be an electric car haven. Why? Well…simple answer? Incentives are being reduced.
As South China Morning Post explains:
“Electric car buyers will have to loosen their purse strings after the government drastically reduced the waiver on the first registration tax with immediate effect.”
“Financial Secretary Paul Chan Mo-po in his budget speech on Wednesday said discounts given on the tax would be capped at HK$97,500, meaning a buyer of a Tesla Model S would end up paying about 80 per cent of the tax payable on the car.”
“From April 1, 2017 to March 31, 2018, the first registration tax for electric commercial vehicles, motorcycles and motor tricycles will continue to be fully waived. However, the first registration tax waiver for electric private cars will be capped at HK$97,500,” he said.
What this all means is that electric vehicles (priced over HK$97,500) will become more expensive in Hong Kong. For example, the base Tesla Model S will be taxed at $435,000 HKD ($56,000 USD), effectively doubling its price in Hong Kong.
Higher-line Teslas would be taxed even more, up to ~$1 million HK or $150,000 USD. So, yeah, high-priced Tesla will struggle to sell in Hong Kong effective April 1.
Source: South China Morning Post