Heavy EVs Prompt Tax Overhaul as Fuel-Electric Parity Reform Begins

Recently, new energy vehicles (NEVs) have drawn attention due to increased vehicle weight. Traction batteries are the primary contributor to this added mass, with mainstream battery packs for household NEVs typically weighing between 500 and 650 kilograms; some long-range models even reach 700 to 800 kilograms. The resulting increase in curb weight accelerates road surface deterioration, shortens pavement lifespan, and poses additional road safety risks. As of now, China’s NEV fleet has surpassed 43 million units, with market penetration continuing to rise. The existing taxation system—originally designed for internal combustion engine vehicles—fails to account for NEVs’ actual consumption of road resources, leading to a growing funding gap for highway maintenance. Against this backdrop, relevant authorities have initiated studies to optimize road maintenance fees and vehicle taxation systems. Current tax exemptions for NEVs—including purchase tax and vehicle and vessel tax—are expected to be gradually phased out, with “parity between fuel-powered and electric vehicles” emerging as the guiding principle for reform. The proposed reform will adopt a gradual and differentiated approach to taxation. Industry experts recommend introducing a new road usage tax that factors in mileage, vehicle weight, and operational purpose, distinguishing between private and commercial vehicles. Under this framework, private vehicles could benefit from a certain tax-free mileage allowance. To ease implementation, the levy could be integrated into electricity bills or charging service fees, mirroring the existing model for fuel vehicles. Meanwhile, to address excessive vehicle weight, newly implemented regulations on automotive energy consumption now link electric energy consumption limits directly to curb weight, imposing stricter efficiency standards on heavier models to incentivize automakers to pursue lightweight design. The industry widely acknowledges that simply increasing battery capacity to extend range is not a sustainable strategy. Although lightweighting raises R&D and manufacturing costs, it effectively reduces energy consumption, enhances safety, and lessens road resource usage—making it an essential pathway toward high-quality industry development.