China to scrap taxes on new-energy car buying

Shanghai, May 6 (Gasgoo.com) In the second half of 2008, China will stop levying taxes on the purchase of diesel- and hybrid-powered vehicles. The central government also encourages the local governments to issue new policies that support the market expansion of energy-efficiency vehicles.

Industry insiders said that the Chinese government has first listed the diesel- and hybrid-powered vehicles as the most-favored cars in the new policy on energy and taxation because the two auto types have sophisticated technologies and mature markets. The electric vehicle will also be supported by this state policy soon after the related auto engineering and marketing get ready for its mass production.

At the recent Beijing auto show, BYD E6, GW Kulla, and Geely LC-E were unveiled as some of the first batch of all-electric cars in China. The all-electric vehicle is the currently best solution to achieving the zero-emission and zero-pollution targets, but a great number of power-recharging stations must be built before many electric cars run on the Chinese roads.

Since late March, four new-energy car models have been granted the production permit from China's top economic planning body. The four cars are the Chery A5 hybrid, Buick LaCrosse eco-hybrid, FAW's CA7130 hybrid, and Passat's fuel cell sedan, to be followed by an increasing number of new-energy vehicles on a waiting list for the hard-to-get "birth permit."