The Ministry of Industry and Information Technology announced that it plans to cancel the list of new energy vehicles exempted from vehicle purchase tax for 432 models

The Ministry of Industry and Information Technology released a list of new energy vehicle models exempted from vehicle purchase tax that will be revoked, showing that after the 19th and 20th batches of new energy vehicle models exempted from vehicle purchase tax were released in July 2018 and September 2018 respectively, a total of 432 models had no production or import volume within 12 months and are planned to be revoked.

Data from Autohome

It is understood that among the 432 new energy vehicles withdrawn this time, 358 are pure electric models, accounting for more than 80%. Some models of companies such as Beiqi Foton, BYD, Dongfeng Motor, SAIC GM, and Hozon New Energy have appeared on the withdrawal list, including BYD e5/Song EV, Nezha NO1, Qiantu K50, Zhidou EX1 and other models.

In addition, new car manufacturers also appear on the list, and Nezha NO1 under Hozon New Energy is one of them. It is understood that Nezha N01 is an SUV launched by Hozon New Energy in November 2018, and its sales once exceeded 1,000. Data shows that Nezha N01 sold 802 units in August this year.

This is not the first time that the Ministry of Industry and Information Technology has withdrawn its vehicle models. Previously, the Ministry of Industry and Information Technology has successively released multiple lists of withdrawn vehicle models. The policy basis is that on April 2, 2018, the competent department issued an announcement stating that the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax" will be dynamically managed. Models that were included in the "Catalogue" before January 1, 2017 and have no production or import volume as of the date of the announcement, and models that were included in the "Catalogue" on or after January 1, 2017 and have no production or import volume within 12 months, will be withdrawn from the "Catalogue" after no objection is raised after 5 working days of public announcement.

Industry insiders believe that the above policy is aimed at further regulating new energy products. First, the non-production models occupy the national new energy vehicle catalog exempted from purchase tax, which requires statistics from relevant national departments; second, for enterprises, it takes time and money to apply for the "Catalog", and occupying the quota of the "Catalog" and then being revoked is a waste of resources. Therefore, the dynamic management of the "Catalog" is conducive to guiding enterprises to apply for models that can truly meet market demand.

However, users do not need to worry, as this policy will basically not affect their purchases. Generally speaking, when car companies declare the same product, they will have multiple models based on some parameter information or different suppliers. Even if some of the models are cancelled, it will not affect the continued sales of other models in this product series. The policy proposes management of the "Catalog" mainly to improve product quality and prevent the emergence of mixed fish and dragons. The cancelled models are basically not models on sale, but either discontinued models, non-mass production models, or models that are planned to be launched later and are pending application, which has little impact on the market.

Since the beginning of this year, the Ministry of Industry and Information Technology has announced the cancellation list twice, including the planned cancellation of 156 models in January and the planned cancellation of 72 models in March. The reason was that there was no production or import volume within 12 months.