Chinese EV maker Li Auto falls after it cuts delivery outlook; Beijing extends tax breaks for electric cars

China has extended a tax exemption for new energy vehicles until the end of 2023 as it looks to spur growth for electric cars. China’s electric carmakers have faced a number of headwinds stemming from a resurgence of Covid-19 and Beijing’s continued strict policy of lockdowns to contain the virus. Beijing has on several occasions extended the purchase tax exemption since the policy was first introduced in 2014. Along with other incentives, the policy has helped make China the biggest electric vehicle market in the world.

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