CPCA Advocates Gradual Tax Policy Adjustments to Bridge Tax Disparity Between Fuel and New Energy Vehicles
2025-02-11 / Read about 0 minute
Author:小编   

On February 11, the China Passenger Car Association (CPCA) issued an article highlighting that fuel vehicle exports outperformed those of new energy vehicles. In 2024, China's total automotive exports surged to 6.41 million units, marking a 23% year-on-year increase. Among these, new energy vehicle exports amounted to 2.01 million units, a 12% rise, whereas conventional fuel vehicle exports reached 4.4 million units, up by 26%. With the anticipation that new energy vehicles will dominate the passenger vehicle market by 2025, the industry is striving towards a "robust oil and electric market". To facilitate this, it is proposed to incrementally adjust tax and fee policies to diminish the tax disparity between fuel and new energy vehicles. This could involve modest reductions in purchase tax and vehicle and vessel tax for fuel vehicles, fostering a more equitable market competition. Furthermore, tax standards should encompass the actual energy consumption and emissions of vehicles, transcending the simple classification by power type.