China Adjusts NEV Vehicle Tax Policy: PHEVs Lose Exemption from 2027, Fuel-Electric Parity Push

China's Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology announced adjustments to vehicle and vessel tax incentives for energy-efficient and new energy vehicles. Effective January 1, 2027, plug-in hybrid electric vehicles (PHEVs) will no longer enjoy vehicle tax exemption, and the 50% reduction for energy-efficient vehicles will also be cancelled. The policy shift is officially framed as promoting high-quality development of the NEV industry and advancing fuel-electric parity. The transition window extends to 2027, directly impacting current PHEV sales dynamics and corporate product planning.