(Yicai Global) March 27 -- China industry ministry has held off providing vehicle purchase tax exemptions for 72 versions of new energy vehicle models due to a lack of production over the last 12 months.
The disqualification applies to 28 carmakers in total including industry heavyweights such as BAIC Motor, Beiqi Foton Motor and Jianghuai Automobile, Dongfeng Automobile, Great Wall Motor and Geely, the ministry said in a statement.
NEVs entitled to vehicle purchase tax exemption lose their eligibility if they are not produced for 12 months, as part of efforts to avoid paying incentives for zombie NEV operations. China brought in the policy last May and since then some 700 versions of different NEV models have forgone subsidies.
Many of the models had become outdated due to low mileage and hence ceased production. The models disqualified from subsidies only make up a small proportion of total models on offer in the country.
Editor: William Clegg