China extends EV tax-break

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In 2019, another government measure to boost EVs – requiring auto manufacturers to make a percentage of their output electric – also come into force,.

The China government has recognised that the limitations of EVs make them unattractive to consumers without a subsidy and unattractive to manufacturers without an element of compulsion.

The China market has been the world’s leading EV market for three years. Last year 260,000 EVs were sold in China, this year it is forecast that 700,00 will be sold and, for 2025, China has mandated a 7 million EV market.

With 70% of China’s electric power coming from coal-fired generation, China-made EVs generate 82 grams of CO2 every kilometre driven measured by the amount of CO2 emitted during the entire process from fuel production to driving – compared to 69 grams generated by hybrids.

The average new petrol engine car emits 120 grams per km.

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