China exempted qualifying new energy vehicles from the vehicle purchase tax of around 10% of the vehicle price to support market uptake. The incentive has been extended several times. In 2023, the government extended the exemption for vehicles purchased in 2024–2025 and introduced a 50% tax reduction for purchases in 2026–2027, with tax relief capped at RMB 30,000 per vehicle in 2024–2025 and RMB 15,000 in 2026–2027.