China extended tax cuts on electric vehicles by December 2020

China extended tax rebates for electric and hybrid vehicles by December 31, 2020. Beijing said it will extend the new-energy vehicle (NEV) purchase tax discount until late 2020 to support traditional car makers switching to hybrid and electric cars.

China's finance ministry said in a statement on Wednesday that tax cuts will remain in place as car manufacturers in China prepare to meet NEV quotas starting in 2019. NEV sales in January-November jumped 51.4 percent and were on track to reach the target of 700,000 sales of NEV This year.

The ministry said the extension would help boost support for innovation and development of new energy vehicles as an area where China hopes to pursue and even overtake more established global competitors.

Local companies such as BYD Co Ltd, SAIC Motor Corporation Ltd., BAIC Group and Dongfeng Motor Corp. now competing with global names such as Ford Motor Co. and Nissan Motor Co Ltd in order to develop a successful "green" vehicle for the Chinese market.