The three departments will adjust the technical requirements for new energy vehicle products to reduce or exempt vehicle purchase tax, which will be implemented from January 1

On December 11, the Ministry of Industry and Information Technology, the Ministry of Finance and the State Administration of Taxation (hereinafter referred to as the "three departments") jointly issued the "Announcement on Adjusting the Technical Requirements for New Energy Vehicle Products Subject to Vehicle Purchase Tax Reduction" (hereinafter referred to as the "Technical Requirements Announcement"), clarifying the technical requirements for new energy vehicle products enjoying vehicle purchase tax reduction. The Announcement on Technical Requirements requires that from January 1, 2024, models applying for inclusion in the Catalogue of New Energy Vehicle Models for Reduction and Exemption of Vehicle Purchase Tax must meet the technical requirements of new energy vehicle products, a transition period from January 1, 2024 to May 31, 2024, and a transition period from June 1, 2024 onwards.

Announcement of Technical Requirements" The models with technical requirements will be withdrawn from the "Catalogue of Tax Reduction and Exemption".

It is understood that the mainland has implemented the vehicle purchase tax exemption policy for new energy vehicles since September 2014, and has been extended three times in 2017, 2021 and 2022, and the current policy will expire at the end of 2023.

The First Division of Equipment Industry of the Ministry of Industry and Information Technology said in the interpretation of the "Technical Requirements Announcement" that at present, there is still a certain gap between the cost of new energy vehicles and traditional fuel vehicles, and the purchase subsidy policy has been withdrawn at the end of 2022.

He also said that the "Announcement of Technical Requirements" will help stabilize the automobile market, guide technological progress, guide energy-saving consumption, and guide enterprises to ensure product safety.

Compared with the previous content, there are three modifications to the "Technical Requirements Announcement", one is to appropriately improve the requirements of the existing technical indicators. Taking into account the technological progress and future development, the "Technical Requirements Announcement" has improved the existing technical index requirements such as vehicle energy consumption, driving range, and energy density of the power battery system. In terms of fuel cell vehicles, combined with the progress of fuel cell vehicle demonstration work, the index requirements such as pure hydrogen driving range, system rated power, and the ratio of system rated power to drive motor rated power of fuel cell vehicles have been optimized, and the requirements for fuel cell starting temperature, fuel cell stack rated power density, system rated power density and other indicators have been supplemented. The second is to add the technical index requirements for low-temperature mileage attenuation. In order to guide industry enterprises to continuously improve the low temperature resistance of new energy vehicle products, the "Technical Requirements Announcement" proposes that for pure electric passenger cars and N1 pure electric trucks tested in accordance with "Appendix A" in GB/T 18386.1 "Test Methods for Energy Consumption and Driving Range of Electric Vehicles Part 1: Light Vehicles", if the low-temperature mileage attenuation rate does not exceed 35%, the energy density of the battery system can be relaxed to 95Wh/kg, and the driving range requirements of pure electric passenger vehicles can be relaxed to 120km. The third is to clarify the relevant requirements for battery swap mode models. The battery swap mode has certain advantages in reducing the cost of car purchase, eliminating range anxiety, and improving the safety level. In order to support the innovation and development of the battery swap mode, combined with the development of the industry and the implementation of the standard, the "Technical Requirements Announcement" clarifies that the relevant models need to meet the GB/T 40032 "Safety Requirements for Battery Swapping of Electric Vehicles" standard. At the same time, in order to ensure that the battery is really swapped and can be used, the applicant is required to provide proof materials to guarantee the battery swap service.

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