CAAM proposes removal of NEV purchase limit, continuing NEV subsidy policy

Shanghai (Gasgoo)- China Association of Automobile Manufacturers (CAAM), the social organization where China auto outputs and sales are released from, on March 12 proposed the removal of NEV purchase limits and the proper increase of vehicle license plate quota in regions where the car-buying restriction policy has been implemented.

The proposal was reckoned as part of advices offered to revive the auto consumption during the post-epidemic period. For this purpose, the association also provided such suggestions:

* The individual car purchase expenditure should be taken into account over the special additional deductions from taxable personal incomes.

* The purchase tax of the PVs with emissions of 1.6 liters or below should be adjusted; the incentive policies to bring automobiles to the countryside  should be put forward.

* The purchase tax on replacing “China Ⅲ” vehicles should be cut and annulled.

* The development of automobile finance business should be more supported.

*The VAT refund rates on complete vehicle export should be increased.

* The transaction and spending of pre-owned cars should be promoted.

Meanwhile, the CAAM said the central and regional governments should continue making vigorous efforts to develop NEV industry. What they can do include sustaining and improving NEV subsidy policies, enhancing the facilitation in using NEVs, strengthening the infrastructure construction and popularizing NEVs.

To further ease the burdens automakers shoulder, the CAAM thought the authorities should as appropriate adjust the appraisal system for companies implementing the Dual Credit Policy, and postpone the effective date on the execution of China Ⅵ emission standard and the ETC-related policy.

On the same day, the association announced China auto sales in February plunged 79.1% year on year to only 310,000 units, and only 285,000 new vehicles were produced countrywide, a significant slide of 79.8%.