The research report issued by CITIC Securities highlights that the swift evolution of new energy vehicles (NEVs) is reshaping the traditional tax foundation for the automobile consumption tax. Presently, this tax is predominantly imposed based on engine displacement—a criterion that was instrumental in fostering energy conservation and managing consumption patterns during the reign of fuel-powered vehicles. Nevertheless, as the fuel vehicle market shifts towards smaller and medium-sized displacements, the tax base for the automobile consumption tax has progressively concentrated within the 3% and 5% tax rate categories. Concurrently, the widespread embrace of NEVs has precipitated a steady contraction of this traditional tax base. CITIC Securities anticipates that future reforms to the automobile consumption tax may pivot away from a singular focus on displacement, towards a more holistic evaluation of variables such as price, weight, and resource consumption, thereby aligning with the novel industrial terrain of the NEV era.