China Extends New Energy Vehicle Purchase Subsidies and Purchase Tax Exemption Policy for Two Years
EV Automotive industry to benefit from favorable policies in China stimulus package
EV rebate and tax incentives favor MEG core audience of commercial fleet operators
Policies support transition to EV, with reduced pollution during outbreak key driver
NEW YORK, March 31, 2020 Ideanomics, (NASDAQ: IDEX) ("Ideanomics" or the "Company"), is pleased to announce that at a State Council meeting on March 31, Chinese Premier Li Leqiang stated that 1) China will extend new energy vehicles subsidies an additional two years, 2) the Central Government will use fiscal money to compensate the replacement of diesel vehicles in key areas such as Beijing , Hebei and Tianjin, and 3) the exemption of used car VAT tax from May 1 to end of 2023.
This extension benefits Ideanomics' MEG group in various ways. The company estimates that China has over 11 million heavy-duty trucks and off-road vehicles, 14 million light delivery logistics trucks, 1.8 million buses, and 1.1 million taxis and ride share vehicles. Combined, these commercial electric vehicles have an estimated market value of RMB 11.2 trillion (USD 1.6 trillion). The extension provides more time for fleet operators and manufacturers to secure financing and ramp up production following the economic halt due to COVID-19 in the first quarter. The Center provides both new and used electric vehicles as well as financing, licensing, and insurance services. Centrally located near in the key areas, the Mobile Energy Group Center is positioned to facilitate fleet operators in key areas. Additionally, earlier this month, Ideanomics announced that its Mobile Energy Group Center in Qingdao will open on May 1st, making it available to assist commercial fleet customers with their EV transition needs.
"This stimulus package goes beyond what we were anticipating and provides a strong foundation to support our MEG business objectives in 2020," Said Alf Poor, CEO of Ideanomics. "We applaud these measures and will be working quickly and efficiently to help our commercial fleet customers understand the new economic measures put in place today and how these measures can further incentivize the transition to EV from fossil fuel vehicles".
Ideanomics is a global company focused on facilitating the adoption of commercial electric vehicles and developing next generation financial services and Fintech products. Its electric vehicle division, Mobile Energy Global (MEG) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. Ideanomics Capital includes DBOT ATS and Intelligenta which provide innovative financial services solutions powered by AI and blockchain. MEG and Ideanomics Capital provide our global customers and partners with better efficiencies and technologies and greater access to global markets.
The company is headquartered in New York, NY, and has offices in Beijing, China.