On July 8, Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), emphasized at a monthly analysis meeting that the current trend towards oversized new energy vehicles (NEVs) is alarming. This trend not only leads to a waste of resources but also remains largely unchecked under the existing fiscal and taxation framework. He noted that in the past, traditional fuel vehicle manufacturers exercised caution when developing large SUVs, primarily due to tax disincentives linked to engine displacement. Specifically, vehicles with engines exceeding 2.5 liters were subject to a 25% tax. However, the current taxation standards for NEVs do not take into account vehicle weight or power performance, thereby failing to effectively curb the trend towards larger vehicle sizes and excessive power outputs.

Cui Dongshu proposed the establishment of an economic vehicle standard system to incentivize the purchase of more modestly sized vehicles among the general public. Additionally, he advocated for the implementation of taxation and energy consumption management measures to guide and restrain the growing preference for oversized vehicles.