The Secretary-General of the China Passenger Car Association, Cui Dongshu, publicly rebuked the Chinese Communist Party’s official policy of vigorously promoting the development of new energy vehicles, saying, “I will absolutely not buy a new energy vehicle.” He pointed out that the pricing system and tax system of new energy vehicles are completely different from traditional fuel vehicles, making it very difficult for the two to compete.
Cui Dongshu, known in the Chinese automotive industry for regularly releasing car market data and analysis comments, is a prominent figure.
On June 11, Cui Dongshu voiced grievances for the plight of traditional fuel vehicles in mainland China during a live stream on the web media “Spicy Car Reviews”.
Cui Dongshu stated that the pricing system and tax system of new energy vehicles are different from traditional fuel vehicles: “Our fuel vehicles are managed as luxury goods with enormous tax pressure, while new energy vehicles are tax-free products with extremely low costs, so it is very difficult for the two to compete.”
He also mentioned that fuel vehicles bear all the social responsibilities of the entire automobile market, pay substantial taxes, and carry a significant stigma.
He emphasized, “I only buy fuel vehicles, so I will absolutely not buy a new energy vehicle.”
In recent years, China has vigorously developed new energy vehicles, with numerous new energy vehicle companies emerging, such as NIO, Xiaopeng, Ideal, NIO, and Leapmotor, all of which are new brands founded in recent years. Mainstream companies like SAIC, FAW, Dongfeng, Geely, Changan, Chery, and Great Wall, among others, have also introduced their own new energy vehicle series.
Chinese Premier Li Keqiang conducted a survey at the 2024 Beijing International Auto Show on April 28 last year. He stated that it is necessary to thoroughly implement the directives of Chinese Communist Party leader Xi Jinping to promote the high-quality development of the automobile industry and vigorously develop intelligent connected new energy vehicles.
During the visit, he toured exhibition areas of various automobile brands such as Dongfeng, BYD, Zhi Ji, Jue Yue, BMW, Geely, Xiaomi, Ceres, and Xiaopeng.
Currently, in mainland China, purchasing traditional fuel vehicles incurs a tax burden of 15% of the vehicle price more than that of new energy vehicles. The higher the displacement, the higher the payment, with the vehicle purchase tax alone representing 10% of the price. Additionally, new energy vehicles priced at 300,000 yuan or below are exempt from the purchase tax.
Fuel vehicles also have hidden costs, such as in Beijing where bidding for a fuel vehicle license plate exceeds 100,000 yuan, and in Shanghai where the auction price for a fuel vehicle plate is around 80,000 yuan, while green plates for new energy vehicles are issued for free. Fuel vehicles in first-tier cities are restricted to one day per week, while new energy vehicles have no such restrictions.
New energy vehicles eligible for green plates are exempt from vehicle purchase tax, some first-tier cities have no purchase restrictions or restrictions on driving, and even parking fees in some public places are cheaper for new energy vehicles, making these “privileges” an important reason for consumers to choose new energy vehicles and causing envy among many fuel vehicle owners.
In other words, the automotive industry has been in a state of “same vehicle, different rights” for the past few years. For example, fuel vehicles pay billions in fuel taxes each year but cannot enjoy the policy benefits of no purchase restrictions, no driving restrictions, and discounted parking fees, while tax-exempt new energy vehicles reap all these benefits.
Cui Dongshu spoke out in support of fuel vehicles in early last year. He suggested that when the sales proportion of new energy vehicles reaches 30%, fuel vehicle users should be given “same vehicle, same rights” treatment to promote normal consumption in the fuel vehicle market.
According to data released by the China Association of Automobile Manufacturers, in the first five months of this year, the proportion of new energy vehicles (pure electric vehicles and plug-in hybrid vehicles) in mainland China reached 44%, an increase of 4.1% compared to the same period last year.