China grants Tesla a sales tax exemption for its vehicles

The Chinese government has added Tesla’s Model S, Model X and Model 3 to a list of EVs that qualify for exemptions to the country’s 10% vehicle sales tax. No reason was offered for the move, which took China-watchers by surprise. Imported vehicles are generally not eligible for the exemption.

As fate would have it, the move comes just as Tesla has increased prices of its vehicles in China by about 3% in order to compensate for exchange rate fluctuations and the on-again, off-again trade war. The California carmaker announced that the tax exemption could save buyers up to 99,000 yuan ($13,957) on a new Tesla.

The company’s Gigafactory 3 in Shanghai is scheduled to begin production later this year, building Model 3s for the China market. Some variants of Model 3, as well as Model S and Model X, will still be imported from the US.

As Electrek‘s Fred Lambert points out, this could be big boost to Tesla’s Chinese fortunes. Tax savings will sway only a certain number of potential buyers, but given the size of the market, that could represent a huge number of vehicles.

Source: Electrek

  • Dennis Worley

    I would like to think the reason the Chinese Govt. has done this is they have read Musks stated aim to save the planet………but I the way they treat some of their people still has me worried!
    We need to reform the UN.

    • freedomev

      No, it was Musk that got them, leaders, etc, to put up all the money for the GF3 so they want Tesla to succeed.
      Fact is Tesla got everything incompetent Chump is trying to get, an open Chinese market with full ownership and control.