BEIJING, 13th October, 2026 (WAM) -- China announced on Monday that it will cut the value-added tax (VAT) export rebate rate for new energy vehicles (NEVs), including battery electric and plug-in hybrid vehicles, to 9 percent from 13 percent starting 1st April 2027, according to a statement jointly issued by the Ministry of Finance and the State Taxation Administration. Existing consumption tax refund or exemption arrangements will remain unchanged.
The move comes as China's auto exports totalled 8.205 million units during the January-September period, including over 4 million NEVs, more than double the level a year earlier, Xinhua News Agency reported. The rebates for battery products will also be eliminated from 1st January 2027.
Luo Zhiheng, Chief Economist at Yuekai Securities, said cutting export tax rebates can, to some extent, reduce rat race competition and encourage companies to shift from low-price competition to technology- and brand-based competition, while Chinese NEVs retain their competitiveness in European and US markets.
Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, said exports have continued to grow rapidly, demonstrating strong resilience, while the industry is expected to maintain steady operation in the fourth quarter of this year.