Overseas Countries Policies of EV in 2022

While China is vigorously developing new energy vehicles, overseas countries have also provided various subsidies and tax reduction policies for this market segment, and hope that in this way, the consumption trend of new energy vehicles in their own countries will be driven by policy. Buying demand-driven shifts. Entering 2022, what kind of promotion policies have overseas countries provided for the new energy vehicle market?

The U.S. begins implementing the NEV tax credit in 2022 and has set several conditions for this. These include an additional $4,500 in tax credits for new-energy vehicles made by a business if it joins the UAW, and an additional $500 in tax credits for new-energy vehicles that use U.S.-made batteries Exemption; starting in 2027, only NEVs assembled in the U.S. with a battery capacity of at least 50kWh are eligible for the $7,500 basic tax credit.

Citing foreign media reports, in 2022, the average subsidy amount for each pure electric vehicle in Germany will increase to 50,000-58,000 yuan, and the average subsidy amount for each plug-in hybrid vehicle will also increase by 5,400-11,000 yuan; France subsidizes up to about 86,000 yuan per pure electric vehicle; the Netherlands subsidizes 32,000 yuan for each electric vehicle priced below about 324,000 yuan.

According to the Japan Broadcasting Association, in order to increase the market share of electric vehicles, the Japanese government intends to double the subsidies for new purchases of electric vehicles from the spring of 2022, with a maximum subsidy of 800,000 yen (approximately RMB 45,000).

At the beginning of the year, South Korea's environment ministry and the auto industry revealed that only EVs priced at 55 million won ($46,000) or less this year are eligible for the government's full subsidy, compared with 60 million won last year electric vehicles of or below are fully subsidized. According to a policy issued by the Korean Ministry of Environment, the maximum subsidy amount for electric passenger vehicles in South Korea will be reduced from 8 million won to 7 million won ($5,900), and the maximum subsidy amount for small electric trucks will be reduced from 16 million won to 14 million won.

According to a draft policy document obtained by media, the Thai government plans to provide subsidies of 70,000 to 150,000 baht per vehicle for new energy vehicles, depending on the model. Compared with the consumption tax rate of 8% for traditional vehicles, new energy vehicles can enjoy a preferential tax rate of 2%. New energy vehicles imported into Thailand from 2022 to 2023 can enjoy up to 40% off the import tax. At the same time, the import of key components of new energy vehicles such as batteries can enjoy the preferential policy of exemption from import tax.

It is noted from related reports that the Swedish government will allocate 3.5 billion kronor (about 2.3 billion yuan) for subsidies for new energy vehicles in 2022. And just one and a half months after the new year, the money is not enough. Since Sweden's subsidies for new energy vehicles are issued 6.5 months after the license plate, it can also be considered that the cars receiving subsidies were all purchased before August last year.

In 2021, Norwegian dealers sold a total of 176,276 vehicles, of which 65% were pure electric and 28% were hybrids, according to the Norwegian Road Traffic Information Board (OFV). This achievement is closely related to Norway's measures to promote the use of electric vehicles, which include reducing car purchase tax, license plate tax, annual car tax and reducing parking fees in public places. Electric vehicles can also use the same lane as public transport, etc. However, the Norwegian government has a fiscal shortfall of $3.41 billion in 2021 due to tax breaks, and Norway's legislature discussed scaling back tax breaks for electric vehicles last year, which could put a premium on prices over 600,000 Norwegian kroner (about 600,000 Norwegian kroner). 435,000 RMB) electric vehicles are subject to a 25% surcharge.

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