China to Remove Tax Exemptions for 72 Zombie NEV Model-Types
Xu Wei
/SOURCE : yicai
China to Remove Tax Exemptions for 72 Zombie NEV Model-Types

(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Many of the models had become outdated  due to low mileage and hence ceased production.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

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Keywords: Geely , Beijing Automobile , Beiqi Foton Motor