Chinese government cuts state subsidies for EV manufacturers

The Chinese government will reduce the VAT export rebate for new energy vehicles from 13% to 9% starting April 2027, increasing costs for EV exporters like BYD amid declining domestic sales and strong export growth. This move is part of China's broader effort to phase out subsidies for matured future-oriented industries and push manufacturers to compete on technology and brand rather than price.

This Wire brief sits within Fusion42's coverage of Electric Vehicles.