Tax incentives for foreign EV technology could benefit Chinese lubes producers
China's Ministry of Commerce is providing incentives for domestic EV automakers to utilise foreign technology. The Ministry will introduce a series of fiscal and preferential policies for foreign companies in the hope of spurring development in the country's fledgling EV industry.
Beijing had set guidelines of having 500,000 EVs on the road by 2015, but according to data from the China Automotive Technology and Resource Centre, less than 40,000 were on the road in March this year.
The tax breaks could also provide an unintended benefit for lubes companies. Producers collaborating closely with foreign experts to develop lubes for electric vehicle components could benefit from preferred supplier rights for manufacturers and subesquent after-market networks.
However, numerous incentives have done little to stimulate the overall level of EV sales the government was hoping for, as affluent consumers still tend toward larger, fuel powered vehicles despite registration restrictions.