China grants Tesla cars exemption from 10 per cent purchase tax despite simmering trade tensions with the US
- Move is a boost for Tesla, that sees China as one of its most important markets
- Exemption could reduce cost of buying a Tesla by almost US$14,000
Tesla sees China as one of its most important, growing markets, and the exemption from a 10 per cent purchase tax could reduce the cost of buying a Tesla by up to 99,000 yuan (US$13,957.82), according to a post on Tesla’s social media WeChat account.
Sixteen variants - all the Tesla models sold in the country - are listed on a document issued by MIIT on its website, including Model S, X and 3.
No reason was given for the decision to exclude the cars from the tax, but it comes as Tesla is expanding in China, with a new factory and visits by Chief Executive Officer Elon Musk.
Tesla’s plant in Shanghai will be its first overseas factory, and the company is gearing up for a major Chinese sales push by promoting racing events, showroom parties with DJs and a line of Chinese Tesla stickers for chat apps.
