NEV Support

Measures will be rolled out to bolster the new-energy vehicle (NEV) industry, including extending the preferential policy for purchase tax, the Ministry of Industry and Information Technology said on April 19.

The country will continue to pilot new NEV battery-swapping models amid efforts to stabilize the industrial and supply chains, Luo Junjie, an official with the Ministry, told a press conference.

China’s NEV sector is likely to maintain a rapid pace of expansion in 2022, according to Luo.

Nevertheless, it also faces challenges such as COVID-19 flare-ups, price hikes in raw materials, and auto chip shortages.

To help NEV manufacturers address these challenges, the Ministry will formulate a roadmap for the low-carbon development of the auto industry, encourage the integration of auto electrification and intelligent technologies, and improve the safety of NEV batteries and their adaptation to low temperatures, according to Luo.

It will also speed up the domestic exploitation of NEVrelated resources and cooperate with other authorities in cracking down on hoarding and price gouging to bring raw material prices “back to a reasonable level,” Luo added.

In the first three months of this year, China’s retail sales and output of NEVs amounted to roughly 1.26 million units and 1.29 million units, respectively, both seeing a 140-percent surge from a year earlier, data from the Ministry showed.

Taxation Administration showed on April 19.

The refunds benefited 527,000 taxpayers, according to the administration.

Tax refunds and cuts are expected to total 2.5 trillion yuan ($390.7 billion) nationwide this year, while VAT credit refunds will account for 1.5 trillion yuan ($234.4 billion) of the sum and will all go straight to enterprises, according to this year’s government work report.