Experts Urge Using Taxes and Energy Rules to Curb Oversized EVs

At a monthly analysis meeting, Cui Dongshu, Secretary-General of the Passenger Car Association, pointed out that new energy vehicles (NEVs) are currently exhibiting a clear trend toward larger vehicle sizes—a phenomenon that could lead to resource waste and is not effectively restrained by existing fiscal and tax policies. He noted that in the past, internal combustion engine (ICE) vehicle manufacturers were relatively cautious when developing large SUVs, primarily due to displacement-based taxation: vehicles with engine displacements exceeding 2.5 liters were subject to a 25% tax. In contrast, today’s NEVs vary significantly in terms of vehicle weight and power performance yet are subject to a uniform tax standard, making it difficult to curb the trend toward oversized vehicles and excessive power output. Cui Dongshu recommended establishing a standard system for economical vehicles to support ordinary consumers in purchasing cars and using tools such as tax adjustments and energy consumption management to guide and regulate the trend of NEV upsizing.