China’s electric vehicle industry rose with the aid of tax breaks.
China will add consumption tax on lithium-ion batteries from September 1 and on solar cells from April 1.
OriginalSourceSouth China Morning PostHong KongLeanCenterCredibilityPublished10:00 UTCRatings: AllSides, MBFCSourceSouth China Morning PostHong KongLeanCenterCredibilityPublished10:00 UTCRatings: AllSides, MBFC
“China’s EV industry rose with the aid of tax breaks. What happens when they end?”
China’s electric vehicle industry rose with the aid of tax breaks.
Key points
- China will add consumption tax on lithium-ion batteries and solar cells starting September 1 and April 1.
- Analysts estimate the new battery levy adds about 1,000 yuan, or US$147, to EV production costs.
- Rates begin at 2% for lithium-ion batteries and rise to 4% one year after each start date.
- Industry margins were 3.4% in the first five months, leaving manufacturers little room to absorb higher costs.
- Beijing also targets overcapacity and price wars, while prioritizing exemptions for emerging technologies.
How it got here
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9 9 China’s electric vehicle industry rose with the aid of tax breaks.
China will add consumption tax on lithium-ion batteries from September 1 and on solar cells from April 1.