Introduction

With the penetration rate of new energy vehicles in China exceeding 40% in May, the voice calling for "Equal Rights for Oil and Electricity" has become increasingly louder. Especially at the recent Chongqing Auto Show Forum and the just-ended 16th China Automotive Blue Paper Forum, the concept of "Equal Rights for Oil and Electricity" has been repeatedly mentioned. Today, let's discuss it together.

What is Equal Rights for Oil and Electricity

Equal Rights for Oil and Electricity refers to ensuring that both fuel vehicles and new energy vehicles enjoy the same market treatment in terms of market access, tax policies, purchase subsidies, and charging facility construction, thereby eliminating unequal competition in the market, creating a more fair and competitive business environment, and enabling consumers to make more rational purchases of various vehicles.

Privileges of New Energy Vehicles

No Purchase Restrictions

Apart from a few first-tier and new first-tier cities such as Beijing, Shanghai, Shenzhen, Chengdu, and Hangzhou, there are basically no purchase restrictions on new energy vehicles in other cities in China.

Even in these restricted cities, such as Beijing, the annual increase in new energy vehicle quotas is far higher than that of fuel vehicles. From this perspective, the threshold for purchasing new energy vehicles is significantly lower than that of fuel vehicles.

With the State Council proposing on May 29 to "gradually lift the purchase restrictions on new energy vehicles," policies such as Shenzhen explicitly increasing new energy vehicle quotas have been implemented, and the lifting of purchase restrictions in other cities is also imminent. You can refer to the author's previous article "Will It Be Easier to Get a Green License Plate in Beijing? New Policies for Lifting Purchase Restrictions on New Energy Vehicles Have Arrived."

No Traffic Restrictions

Traffic restrictions are mainly a solution proposed by large cities to alleviate traffic congestion and reduce environmental pollution.

For example, in Beijing and Tianjin, the traffic restriction policy for fuel vehicles is that from Monday to Friday, passenger vehicles entering the restricted area are subject to daily restrictions on the passage of vehicles with two license plate numbers, excluding new energy vehicles. This means that owners of fuel vehicles cannot drive for one working day each week. However, green-licensed new energy vehicles are not subject to this restriction.

Tax Exemption

Currently, the policy of tax exemption for new energy vehicles differs in different time periods, with the maximum exemption being 30,000 yuan in vehicle purchase tax this year.

China's vehicle purchase tax rate is 10%. According to the calculation formula,

Tax relief amount = 10% × [Invoice price / (1 + VAT rate of 13%)].

Based on this calculation, models with an invoice price of 339,000 yuan, or a selling price of 300,000 yuan and below, will not be subject to any limit before the end of 2025.

The specific policy is as follows:

New energy vehicles purchased between January 1, 2024, and December 31, 2025, will be exempt from vehicle purchase tax, with a maximum tax exemption of 30,000 yuan per new energy passenger vehicle. For new energy vehicles purchased between January 1, 2026, and December 31, 2027, the vehicle purchase tax will be reduced by half, with a maximum tax reduction of 15,000 yuan per new energy passenger vehicle.

Conclusion

Currently, these privileges for new energy vehicles are policies formulated by China in the early stage to support the development of new energy vehicles. With the development and changes in the market, the policies have been constantly adjusted.

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