MIIT to remove 272 NEVs from purchase tax exemption catalogue

The Ministry of Industry and Information Technology released a notice on revoking the catalogue of NEVs with purchase tax exemption on Sept. 4. According to statistics, 272 new energy vehicles that had no production output or import volume by the end of August will be removed from the NEV purchase tax exemption catalogue.

It can be easily seen that buses and logistics vehicles make up the majority of these vehicles. Particularly, buses are more than logistics vehicles. Drastic drop of subsidies partly resulted in no production output of these buses and logistics vehicles. It is found that with the implementation of the new NEV subsidy policy, the subsidies for all-electric buses have been cut by 30% to 50%.

Commonly, buses and logistics vehicles are customized manufactured, and their models are very complicated. If the downstream market has no need of these models, companies will not produce these models. This is another factor that may result in no production output of buses and logistics vehicles.