The tax burden on imported electric vehicles in China is headed for some relief as the  government  considers to decrease the  tax  on  imported electric cars. The details of the decision made by the Chinese government remain under consideration. Miao Wei -Minister of Industry and Information Technology said that the government is also working on the regulations to encourage the overseas enterprise like Tesla to develop and produce electric vehicles.

china electric

At present the Chinese government only provides subsidies to the locally produced  new-energy vehicles with 35,000 yuan to 60,000 yuan which is only available to  buyers of the exclusive electric passenger vehicles. In 2013, subsidies worth to 26.5 billion yuan  were offered by the government to boost the purchase  of energy efficient products. This was inclusive of automobiles and household appliances.

Diarmuid, O’Connell the vice president of Tesla of business development said, “We understand we are not qualified for direct subsidies at the moment”, were hoping the government will consider the role Tesla can have in catalyzing electric vehicle adoption in Chinaand extend those incentives to our Model S as well.”

Tesla says that the customs tariff plus value added taxes and other taxes account for 30.2 percent of the final price tags of the cars in China. Meanwhile Nissan has already decided to localize the electric vehicles production in China through its Venucia brand.


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