China will extend tax rebates on electric vehicles

China will continue to extend tax breaks and waive 10% purchase tax for electric vehicles at least until 2020. The tax incentive policy will expire at the end of this year, but a surge in market demand has attracted billions of dollars of investment into China and the finance ministry has preferred to continue extending the policy.

A source said the Chinese government will continue to extend its tax incentive policy for the electric vehicle industry that makes it the world's largest market. The policy has made Volkswagen AG, Ford Motor Co. and Tesla Inc. to establish a new factory in China.

Tinuku China will extend tax rebates on electric vehicles

Sales of electric vehicles in 2016 rose 53% to 500,700 units and increased the overall ownership of these vehicles in the country to more than one million units or three times the calculation in 2015.

The Chinese government will also set a deadline to stop production and sales of gasoline and diesel vehicles. The world's second largest economy has been determined to limit carbon emissions by 2030 and alleviate worsening air pollution.