Quick Look at the Announcement on Adjusting the Technical Requirements for New Energy Vehicle Products with Vehicle Purchase Tax Reduction and Exemption, Special Vehicle Department

Recently, the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation (hereinafter referred to as the "Three Departments") jointly issued the "Announcement on Adjusting the Technical Requirements for New Energy Vehicle Products Subject to Reduction or Exemption of Vehicle Purchase Tax" (Announcement No. 32 of 2023 by the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation, hereinafter referred to as the "Technical Requirements Announcement"), which clarifies the technical requirements for new energy vehicle products subject to reduction or exemption of vehicle purchase tax. In order to better understand and implement the Technical Requirements Announcement, the responsible personnel of the Equipment Industry Department of the Ministry of Industry and Information Technology have interpreted the Technical Requirements Announcement. The requirements for new energy vehicles have also been raised.

The Technical Requirements Announcement comprehensively considers technological progress and future development, moderately raises requirements for mature technologies that have been widely applied, and provides preferential support for new technologies and models such as low-temperature attenuation and battery swapping, which is conducive to improving product technology level and promoting mode innovation. Here are the details:

One is to increase the existing technical indicators such as vehicle energy consumption, driving range, and energy density of the power battery system. In terms of fuel cell vehicles, based on the progress of fuel cell vehicle demonstration work, the requirements for pure hydrogen driving range, system rated power, and the ratio of system rated power to drive motor rated power of fuel cell vehicles have been optimized, and additional requirements for fuel cell starting temperature, fuel cell stack rated power density, system rated power density, and other indicators have been added.

The second is to add requirements for low-temperature mileage attenuation technology indicators. In order to guide industry enterprises to continuously improve the low-temperature resistance performance of new energy vehicle products, the "Technical Requirements Announcement" proposes that for pure electric passenger vehicles and N1 class pure electric trucks tested in accordance with Appendix A of GB/T 18386.1 "Energy Consumption and Range Test Methods for Electric Vehicles Part 1: Light Vehicles", if the low-temperature range attenuation rate does not exceed 35%, the energy density of the battery system can be relaxed to 95Wh/kg, and the range requirement for pure electric passenger vehicles can be relaxed to 120km.

Thirdly, the relevant requirements for battery swapping mode vehicle models have been clarified. The battery swapping mode has certain advantages in reducing car purchase costs, eliminating range anxiety, and improving safety levels. In order to support the innovative development of battery swapping modes and in combination with industry development and standard implementation, the "Technical Requirements Announcement" specifies that relevant vehicle models must meet the GB/T 40032 "Safety Requirements for Electric Vehicle Battery Swapping" standard. At the same time, in order to ensure that the battery can be replaced and used properly, the declaring enterprise is required to provide proof of guaranteeing battery replacement services.

The implementation time requirement for the "Technical Requirements Announcement" is that new vehicle models applying to enter the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax" (hereinafter referred to as the "Tax Exemption Catalogue") from January 1, 2024, must meet the requirements of this "Technical Requirements Announcement". Vehicle models that have entered the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax" before December 31, 2023 and are still valid will be automatically transferred to the "Catalogue of Tax Reduction and Exemption", and can still enjoy the policy of vehicle purchase tax reduction and exemption from January 1, 2024 to May 31, 2024. Starting from June 1, 2024, vehicle models that do not comply with this "Technical Requirements Announcement" will be removed from the "Catalogue of Tax Reduction and Exemption". The relevant vehicle models need to complete policy switching compliance related work during the transition period.

It should be noted to promptly upload historical vehicle model materials. Historical vehicle models that have been transferred to the "Catalogue of Tax Reduction and Exemption" must promptly provide the "Tax Reduction and Exemption" and "Battery Swap Mode" labels. For battery swap mode vehicle models, third-party testing reports that meet standards such as GB/T 40032 "Safety Requirements for Electric Vehicle Battery Swap" and proof of battery swap service guarantee must also be provided. The tax department shall handle tax reduction and exemption procedures based on relevant identification.

The increasing demand for new energy is conducive to stabilizing the specialized vehicle market, guiding technological progress, promoting energy-saving consumption, and ensuring product safety.