On October 9, the Ministry of Industry and Information Technology, along with the Ministry of Finance and the State Administration of Taxation, jointly announced a tightening of the vehicle purchase tax exemptions for new energy vehicles (NEVs). This new policy will take effect on January 1, 2026, and imposes stricter technical requirements on eligible vehicles.
The energy consumption requirement for pure electric passenger vehicles has changed. Previously, specific target values were calculated based on the vehicle’s curb weight for energy consumption per 100 kilometers. The new standard stipulates that the energy consumption of pure electric passenger vehicles should not exceed the limits outlined in the “Energy Consumption Limits for Electric Vehicles Part 1: Passenger Cars” (GB36980.1—2025). The limits are as follows: for vehicles weighing ≤1090 kg, the limit is 10.1 kWh/100 km; for vehicles weighing between 1090 kg and 2710 kg, the energy consumption is calculated using the formula ECL=0.00556×(vehicle weight−1780)+13.92; and for vehicles over 2710 kg, the limit is set at 19.1 kWh/100 km. Additionally, all-wheel-drive models must multiply their baseline by 1.03, while high-performance models must apply a factor of 1.2 under certain conditions.
For plug-in hybrid (including range-extended) passenger vehicles, the requirements for electric-only driving range have also been revised. Previously, the equivalent all-electric range requirement was a minimum of 43 kilometers under certain conditions, but the new requirement has increased to at least 100 kilometers.
The fuel consumption requirements for plug-in hybrid vehicles in electric mode have been updated as well. For vehicles with a curb weight under 2510 kg, the consumption must now be less than 70%, compared to the previous requirement of less than 60%. For vehicles weighing 2510 kg and above, the new requirement is less than 75%, up from the previous limit of 65%.
Furthermore, the energy consumption requirements for plug-in hybrid vehicles during electric mode testing have changed. Previously, vehicles with a curb weight under 2510 kg were required to consume less than 125% of a set standard, while those above 2510 kg had to be under 130%. The new requirements set the limits at less than 140% for lighter vehicles and less than 145% for heavier ones.
With the implementation of these new technical requirements, products that do not meet these standards will lose their eligibility for purchase tax incentives and may struggle to gain acceptance in the market. This shift signals a new cycle of product upgrades for new energy vehicles.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/new-standards-set-for-tax-exemptions-on-new-energy-vehicles-in-china-starting-2026/
