China moves to promote auto sales after June rebound

Government weighs extending EV tax break and pushes for more charging stations

20220707 EV VW Tabeta

A Volkswagen dealer in Chongqing promotes a break on auto purchase taxes. (Photo by Shunsuke Tabeta)

SHUNSUKE TABETA, Nikkei staff writer

BEIJING -- China on Thursday laid out plans to encourage purchases of electric and other vehicles, building on a recovery in June that brought the first year-on-year rise in new-car sales in four months.

A notice issued by 17 government bodies, including the commerce and industry ministries, banned regional authorities from favoring locally made autos in their sales subsidy lists. The aim is to ensure that the effects of subsidies for electric and other new-energy autos spread nationwide.

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