BMW becomes the first foreign automakers winning EV subsidy from Chinese government

Import alternative energy vehicles have hardly attracted much concern for relatively high price since they do not enjoy preferential policies which can help lower the price via subsidy. But recently, BMW i3 EV successfully applied for policy subsidies since it had been included into the Directory of Tax-free Models.

BMW i3 pure electric vehicles and two E-REV models have been selected as the models exempted from taxation, which means that foreign EV companies have the equal excess to Chinese alternative energy vehicles market. In this case, BMW i3 consumers are exempted from the purchase tax, which is 10% value of the whole vehicle. In addition, BMW also becomes the only foreign automobile manufacture who has been included in the tax exemption directory for alternative energy vehicles.

However, even if BMW i3 is exempted from the purchase tax, the preference is not obviously convincing since the exemption is in the amount of 45,000 yuan while the whole selling price is 400,000 yuan.

The three major factors that influence consumers in making purchase option are whether the automakers are included in the license plate lottery system, whether there are discounts and tax exemption benefits. Among them the first one is the key factor that most matters. There are 95% consumers thinking that the availability of a license plate is a prerequisite for buying imported alternative energy vehicles.