The Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation recently jointly announced the technical requirements for new energy vehicles eligible for vehicle purchase tax reductions and exemptions from 2026 to 2027. These requirements clarify adjustments to the technical requirements for pure electric passenger vehicles and plug-in (including extended-range) hybrid passenger vehicles. Starting January 1, 2026, models included in the "Catalogue of New Energy Vehicles Eligible for Vehicle Purchase Tax Reductions and Exemptions" must comply with the requirements of this announcement. Starting January 1, 2026, and after the release of the "Catalogue of New Energy Vehicles Eligible for Vehicle Purchase Tax Reductions and Exemptions" effective in 2026 and beyond, purchases of new energy vehicles included in the "Catalogue of New Energy Vehicles Eligible for Vehicle Purchase Tax Reductions and Exemptions" will qualify for vehicle purchase tax reductions and exemptions as specified.
Announcement on Technical Requirements for New Energy Vehicle Products Subject to Vehicle Purchase Tax Reduction and Exemption from 2026 to 2027
No. 24, 2025
In accordance with the "Announcement on the Extension and Optimization of the Vehicle Purchase Tax Exemption Policy for New Energy Vehicles" (Announcement No. 10 of 2023 by the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology), and in light of the technological progress, development of the standards system, and changes in vehicle models of new energy vehicles, the following matters regarding the technical requirements for new energy vehicles subject to vehicle purchase tax exemptions from 2026 to 2027 are hereby announced:
1. The technical requirements for pure electric passenger vehicles have been adjusted as follows: The electric energy consumption per 100 kilometers for pure electric passenger vehicles shall not exceed the electric energy consumption limits for the corresponding models in "Limits of Energy Consumption of Electric Vehicles - Part 1: Passenger Cars" (GB 36980.1-2025). The electric energy consumption limits for passenger vehicles with a maximum design gross mass exceeding 3,500 kg shall refer to the electric energy consumption limits for passenger vehicles with a maximum design gross mass of 3,500 kg in GB 36980.1-2025.
2. The relevant technical requirements for plug-in (including extended-range) hybrid passenger vehicles are adjusted as follows:
(1) The pure electric driving range of plug-in (including extended-range) hybrid passenger vehicles shall meet the conditional equivalent full electric range of not less than 100 kilometers.
(II) The fuel consumption of plug-in electric (including extended-range) hybrid passenger vehicles in the charge retention mode test (excluding fuel consumption from electrical energy conversion) shall be compared with the fuel consumption limits for corresponding models in the "Limits of Fuel Consumption for Passenger Cars" (GB 19578-2024): for passenger cars with a curb mass of less than 2510kg, the fuel consumption limit shall be less than 70%; for passenger cars with a curb mass of 2510kg and above, the fuel consumption limit shall be less than 75%. The fuel consumption limit requirements for passenger cars with a maximum design gross mass exceeding 3500kg shall refer to the fuel consumption limits for passenger cars with a maximum design gross mass of 3500kg in GB 19578-2024. No fuel consumption requirements are imposed on non-gasoline and diesel plug-in electric (including extended-range) hybrid passenger vehicles.
(3) The electric energy consumption of the power consumption mode test of plug-in (including extended-range) hybrid passenger vehicles shall be compared with the electric energy consumption limits of corresponding models in the "Limits of Energy Consumption of Electric Vehicles Part 1: Passenger Cars" (GB 36980.1-2025): for passenger cars with a curb mass of less than 2510kg, it shall be less than 140%; for passenger cars with a curb mass of 2510kg and above, it shall be less than 145%; the electric energy consumption limit requirements for passenger cars with a maximum design gross mass exceeding 3500kg shall refer to the electric energy consumption limit requirements for passenger cars with a maximum design gross mass of 3500kg in GB 36980.1-2025.
3. Other technical requirements continue to be implemented in accordance with the "Announcement on Adjusting the Technical Requirements for New Energy Vehicle Products for Reduction and Exemption of Vehicle Purchase Tax" (Announcement No. 32 of 2023 of the Ministry of Industry and Information Technology and the State Administration of Taxation).
IV. Starting January 1, 2026, models included in the "Catalogue of New Energy Vehicle Models Exempt from Vehicle Purchase Tax" (hereinafter referred to as the "Tax Reduction and Exemption Catalogue") must comply with the requirements of this announcement. Models already included in the "Tax Reduction and Exemption Catalogue" and meeting the technical requirements of this announcement before December 31, 2025, will be automatically transferred to the first phase of the 2026 "Tax Reduction and Exemption Catalogue." Models that do not meet the requirements will be removed from the "Tax Reduction and Exemption Catalogue." Models that do not meet the requirements of this announcement and are intended for inclusion in the first phase of the 2026 "Tax Reduction and Exemption Catalogue" must complete their application by December 12, 2025. Models whose listing has been revoked may reapply for inclusion in the "Tax Reduction and Exemption Catalogue."
V. Starting January 1, 2026 (inclusive), and after the release of the "Tax Reduction and Exemption Catalogue" effective in 2026 and beyond, purchasers of new energy vehicles included in the "Tax Reduction and Exemption Catalogue" are eligible for vehicle purchase tax exemptions and reductions in accordance with regulations. Tax authorities will handle vehicle purchase tax reduction procedures based on the "Tax Reduction and Exemption Catalogue," the tax reduction and exemption labels, and other required documentation for vehicle purchase tax returns.
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