Tax reductions and exemptions:
The Ministry of Finance announced in Dec, 2011 that a total of 49 domestically made electric and fuel cell passenger vehicle models will be exempted from sales taxes, including 7 FCV models produced by SAIC (3), FAW(1), Shanghai Volkswagen(1), Chery(1) and Changan(1). In March 2012, the tax cuts policy for energy-saving and new-energy vehicles were announced, and according to the new policy, half vehicle tax is to be collected on 4 types of FC Buses.
Funding:
The Ministry of Finance announced Oct. 12, 2012 that the central government will allocate funding to support technological innovation projects in the nation‘s new energy auto industry. The funding will support new energy vehicles including electric vehicles, plug-in hybrid vehicles and fuel cell vehicles. The statement did not elaborate on the amount of funding.