The NPC meetings in China propose development measures for NEVs; Suggest extending national subsidies and tax exemption

On Friday, May 22, China held the most important political event of the year - The National People's Congress (NPC) meetings, also known as “Two Sessions” in Chinese. At the annual gathering, the NEV-related proposals suggest to extend the national subsidies and purchase tax exemption, promoting the popularity of NEVs, opening up the circulation of used NEVs, and facilitating the upgrading of NEV technologies. The suggestions were also on the development of NEVs and related policy support.

The China National Democratic Construction Association tabled this proposal, highlighting the acceleration of recycling used NEV power batteries including adjusting the design of top-level power battery recycling, the recycling management system, R&D of recycling technology, and recycling business development.

Xu Heyi, member of the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC) and Party Secretary & Chairman of the BAIC Group brought two proposals to "Promoting Smart City Construction with Automobiles as New Infrastructure" and "Promote Stable and Long-term Development of NEV Industry with the New Model of Combining Industry and Finance.”

Fang Yunzhou, chairman of Zhejiang Hezhong New Energy Automobile and an NPC delegate, suggests on “Accelerating the Introduction of a Package of Support Policies for NEVs to Promote the Stable and Healthy Development of NEVs."

Zhang Xinghai, chairman of Chongqing Sokon Industry Group and an NPC delegate, suggested, "First, tax support: extend NEV purchase tax exemption to 2025; second, R&D support: cultivate core technologies for electrification and intelligence; and third, market support: further stimulate the diversified development of NEVs; fourth, used car market support: push up used NEVs circulation." 

Shanghai Metals Market believes that these policy proposals require long-term and continuous efforts before seeing a material effect. Specific and concentrate measures are unlikely to be introduced in the short term.