China will extend its exemption of electric vehicles’ from purchase taxes to the end of 2023, creating tax cuts worth a total of 100 billion yuan, state media Xinhua quoted cabinet meeting as saying on Friday.
A research report said EV sales in Mainland China have more than doubled in H1 2022 and it is now by far the biggest EV market. 57 percent of global EV sales were in Mainland China. With 118 percent year-on-year growth, it is the fastest-growing market as well, the report said.
EV companies have delivered more than 2.4 million EVs to customers in Mainland China in H1 2022. This equated to 26 percent of all passenger cars delivered there, against just 10 percent in H1 2021.
“26 percent of new cars sold in H1 2022 in Mainland China were EVs, and more brands and models keep hitting the market. China’s auto industry is showing signs of recovery from supply chain and lockdown challenges, with car companies accelerating production and the government offering tax benefits. With this momentum and strong consumer demand, EV sales should top 5 million by the end of 2022,” said Jason Low, Principal Analyst at Canalys.
BYD dominates the Mainland Chinese market, accounting for six of the top 10 best-selling EV models (when combining BEV and PHEV models). SAIC is in second place with the Wuling Hongguang Mini EV from its SGMW joint venture still proving popular. Tesla was the third biggest automaker in Mainland China in the first half of 2022 and it delivered almost 200,000 vehicles to customers.