China Extends NEV Purchase Tax Exemption Amid Concerns Over Weak Consumer Spending

Key Takeaways

• The exemption was set to expire at the end of 2023.
• Chinese policymakers are prioritizing policies to boost passenger vehicle sales to improve overall consumer confidence.
• Depending on the trajectory of China’s economic recovery, policymakers may release additional measures to incentivize automotive purchases, particularly for NEVs, in the months ahead.