China extends EV tax break past year-end deadline

Domestic automakers benefit from longer support, which source says may last 1 year

20220801N China EV

State support has fueled sales of electric cars in the world's largest EV market. (Photo by Shunsuke Tabeta)

SHUNSUKE TABETA, Nikkei staff writer

BEIJING -- China will extend a tax incentive for electric vehicle purchases beyond the December sunset date as the government tries to expand the market for EVs, an area where domestic manufacturers hold an advantage.

The State Council, China's cabinet, decided Friday to continue the acquisition tax exemption for new energy vehicles, a catch-all term for various types of electrified cars.

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