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China to drop sales tax on hybrid models?

Media reports in todays Chinese motoring press indicate that the Chinese government could begin a hybrid revolution over the coming years, especially if they plan to drop sales tax on each hybrid car!

Chinese manufacturers are currently working on their own range of hybrid motors, Chery, BYD, Chang’an, etc have all produced hybrid prototypes, and are on the verge of putting them into production. The leaders of each company must been busy lobbying the central government for some time, for them to gain such a large amount of support. China officially dropped diesel as a potential rival to hybrid models a while back. Dropping sales tax on hybrid vehicles will only serve to make them more popular with the every day driver.

In other hybrid related news, the central government has approved 7 hybrid cars for production in China this year, the cars are:

  1. Chery A5 Hybrid
  2. Buick Lacrosse Hybrid
  3. FAW Bentung Hybrid

The other vehicles are coaches, and buses from Dongfeng, Chang’an Auto and Foton. .

Despite the wet start to the hybrid market in China, it seems the domestic makers are catching up fast with their technology, pricing, and designs. Will China Car Times own a hybrid in the near future? Possibly.

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3 Comments »

Comment by Caroline
2008-05-05 19:26:46

Vey wise from the Chinese authorities to drop Diesel as a potential rival to hybrid models. Those engines are awful poluters with or without DPF. It seems it takes time for Europe to realize it and when it comes to the USA…oh god, are they dumb enough to believe that a Diesel V8 in their Ford Pick-ups is going to be less poluting ?! Miles per gallon benefits will never erase C02 and even worse Azote rejections !

 
Comment by joninchina
2008-05-06 00:12:36

Great move by the government to seriously consider this….hey America - yoohoo?????? Are you paying attention? For the rest of us here at CCT, check out a VERY eye opening movie I recently saw - ‘Who killed the electric car’. It’s a documentary made 2-3 years ago and it is a MUST SEE movie if you support the idea of hybrid/electric vehicles. Now……..let’s hope that we start seeing hybrid /electric cars in the small and mini car segments as well - these will be the cars that can be ‘affordable’ to the average consumer AND help reduce fuel consumption and pollution. A hybrid LaCrosse is all well and good….but it will be LUCKY to get even 20mpg. A regular (not hybrid) F1 (the upcoming mini from BYD) is purported to use 4.2 litres of gas for every 100km (at 90kph) - that converts to almost SIXTY mpg. Imagine what a hybrid F1 could do….75, maybe 80mpg?? What if BYD could sell a hybrid (or even all electric) F1 for say…..50,000rmb - and us consumers pay NO sales tax?????? Where do I sign up?!?!?!?!????? Seriously - China (and the whole world) NEEDS small hybrids, and soon.

 
Comment by dragin
2008-05-06 01:00:34

Time is of the essence…..it’s a matter of survival.
Yes, it’s a wise move and let’s hope the incentives will be extended to the manufacturers as well.
Well to do Chinese are not going to choose the green option unless they are incentivized to do so.

 
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