As of November 10, a total of 4.48 million NEVs has been sold in China this year, up 78.1 percent year-on-year.

(Image credit: CnEVPost)

As of November 10, China has exempted a total of RMB 68.6 billion ($9.7 billion) in purchase taxes on new energy vehicles (NEVs) this year, up 101.2 percent year-on-year, Wang Daoshu, deputy head of the State Taxation Administration, said today at a news conference.

As of November 10, a total of 4.48 million NEVs has been sold in China this year, up 78.1 percent from a year earlier, according to invoice data on motor vehicle sales, Wang said.

China has exempted NEVs from purchase taxes since 2014, allowing most consumers who buy such models to save about 10,000 yuan relative to those who buy conventional fuel vehicles.

The policy originally expired at the end of 2017, but was extended until the end of 2020 before it expired, and in March 2020, China renewed the policy until the end of 2022. In September of this year, the policy was extended again until the end of 2023.

From January to October, China's wholesale sales of new energy passenger vehicles were 5.015 million units, up 110.8 percent year-on-year. Retail sales were 4.432 million units, up 107.5 percent year-on-year, according to data released earlier this month by the China Passenger Car Association (CPCA).

In addition to the purchase tax exemption for NEVs, China announced on May 31 that it would reduce by half the purchase tax on passenger vehicles of 2.0 liters or less that are purchased between June 1 and December 31 and cost no more than RMB 300,000.

Prior to the policy, the purchase tax rate for internal combustion engine (ICE) vehicles in China was 10 percent.

From June to November 10, China reduced the purchase tax on eligible ICE vehicles by a total of RMB 39.8 billion, Wang said at today's briefing.

In addition to the purchase tax exemption for NEV purchases, China currently offers purchase subsidies for such vehicles, though they are set to expire at the end of the year and have not been extended.

Brands including Nio, Zeekr, and Huawei-backed AITO have previously released plans for how consumers will enjoy state subsidies for purchasing their models before the end of the year.