China is set to phase out tax exemptions for plug-in hybrid vehicles from 2027, a move that could significantly impact the country's growing electric vehicle (EV) market. Currently, plug-in hybrids, which combine a conventional engine with an electric motor, enjoy tax breaks and other incentives to encourage their adoption. However, as China seeks to accelerate the transition to full electric vehicles, it is reevaluating its support for these hybrid models, which are often seen as a stepping stone to full electrification but also contribute to greenhouse gas emissions. The change is likely to benefit pure electric vehicles, which are expected to see increased demand in the coming years.
China to end tax exemptions for plug-in hybrids from 2027 electrive.com
