BYD Qin

BYD Qin

It seems that China is entering a higher gear for New Energy Vehicles (NEV) - all-electric and plug-in hybrids.

The nation's latest incentive is exemption from tax for new energy cars and ships.

"Cars exempted include pure electric commercial cars, plug-in hybrid vehicles and fuel-cell commercial cars, according to a joint statement by the Ministry of Finance, State Administration of Taxation and the Ministry of Industry and Information Technology.

In addition, vehicle and vessel tax will be halved for users of energy-saving cars and ships, said the statement."

In the first three months of this year, production of NEVs increased in China threefold to 25,400.

If plug-in cars are the future and China achieves such levels, then many new Chinese companies will get a chance to go global.

"The Ministry of Commerce also announced earlier this year that China will continue to encourage the construction of charging facilities in cities and implement tax exemptions and subsidies for car purchases."

Source: Xinhua