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More measures needed to promote new energy vehicles

By LI FUSHENG | China Daily | Updated: 2020-03-23 11:17
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Chinese electric car startup Enovate showcases a model at the Guangzhou auto show in 2019. [Photo by Li Fusheng/China Daily]

He proposed that the government consider cutting purchase taxes for vehicles, a measure that worked well in the past.

Woellenstein said the measure will attract potential car buyers to place their orders earlier but will not create additional demand, but it is probably a reasonable measure to be considered under current circumstances.

"What we do need now is a kick, a stimulus for the market to come back," he said.

Dong also suggested that the authorities extend China's financial stimuli to the new energy sector by another two years.

China introduced the stimuli in 2009 and has spent tens of billions of yuan on the sector.

It has cut the subsidies over the past years and plans to stop them altogether by the end of this year.

The latest slash came in late June 2019, which has since affected the enthusiasm for new energy vehicles. Their sales last year totaled 1.21 million, down 4 percent year-on-year, ending years of growth.

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