China’s extension of NEV purchase tax exemption policy to provide short-term support, no major changes in NEV sales, profit margin expected – Morgan Stanley
China’s extension of NEV purchase tax exemption policy to provide short-term support, no major changes in NEV sales, profit margin expected – Morgan Stanley

China’s extension of NEV purchase tax exemption policy to provide short-term support, no major changes in NEV sales, profit margin expected – Morgan Stanley

China’s extension of the new energy vehicle purchase tax exemption policy is largely in line with market expectations, said Morgan Stanley in a note. 

Although the policy can provide near-term support for the industry, it does not expect any significant changes in NEV sales or profit margins, as the market is still highly competitive and the economic outlook is still uncertain, it said.

The market now expects further economic stimulus to be introduced in the second half of the year, especially those favorable to new energy vehicles, therefore, in addition to the potential demand recovery, policies will lead the industry to further outperform the market, it estimated.