China to End Vehicle and Vessel Tax Breaks for NEVs and Energy-Saving Cars From Jan. 1, 2027

China will cancel its vehicle and vessel tax incentives for new energy vehicles (NEVs) and energy-saving cars starting January 1, 2027, including exemptions for battery-electric commercial vehicles, plug-in (including range-extended) hybrids, and fuel-cell commercial vehicles, according to 36Kr. The move means China’s NEV vehicle-and-vessel tax preferential policy, in place for 15 years, is entering a phase-out period. Earlier this year, China adjusted its NEV purchase tax policy from full exemption to a 50% reduction, with a cap on the exempted amount.