Vingroup applies for incentives for electric cars, how are countries doing?

Countries around the world have introduced many policies to promote the electric vehicle industry, from tax reductions, fees, subsidies to incentive programs.

At a meeting with leaders of the Government, ministries and sectors in mid-May, Vingroup applied for a pilot exemption of excise tax and registration fee for electric cars for 5 years in order to promote the electric vehicle market. . In fact, this is the first proposal in Vietnam but not new in the world. Many countries have also applied a combination of supportive policies, strong incentives for consumers and manufacturers to encourage the model transition from gasoline to electricity, typically China, the US and other countries. Europe. According to the Wall Street Journal, Mr. Hallgeir Langeland, 65, a former Norwegian politician and environmental activist, has not owned a car in 25 years. But when Ford launched an all-electric version of the Mustang last year, he didn’t hesitate. “I have to have it. I can’t wait until March,” Mr. Langeland said, recalling the Mustang he drove as a young man. Christian Burg, owner of an energy-efficient housing construction business in Germany, has been driving a petrol BMW X3 SUV for many years. When the German government increased subsidies for electric cars, he applied for a small business subsidy and switched to the iX3 rechargeable hybrid. “We received an incentive of 3,750 euros ($4,500),” he revealed. Governments are tightening emissions standards and supporting industries on the front lines of the fight against climate change. Photo: Reuters. From electric vehicle powerhouses China and Europe… Governments around the globe have introduced a variety of policies to boost the electric vehicle industry over the years, including reducing taxes, fees, subsidies, incentives, and administrative regulations. The common point is that governments have set a specific roadmap to transition from fossil fuel vehicles to electric cars. According to the CNBC Many Chinese drivers switch to electric cars because of the government’s preferential policies. For example, in 2016, Chinese buyers received a nationwide discount of 55,000 yuan ($8,599.01) for each BEV and 30,000 yuan ($4,690) for PHEVs. Municipal governments also provide additional support up to 55,000 yuan. Beijing also subsidizes electric vehicle manufacturers based on battery power density, driving range and energy consumption. For example, in 2020, a pure electric vehicle with a minimum range of 300 km will receive a subsidy of 16,200-22,500 yuan (2,532-3,517 USD). Along with that, it supports the construction of a battery charging network for electric vehicles. For taxes and fees, China offers 50-100% reduction in user registration fees from time to time, annual tax relief, free or low-cost charging. In addition, manufacturers will receive credit points if they produce many electric vehicles. China is the leading electric vehicle market in the world. Photo: Reuters. Buyers of electric vehicles in China also receive preferential registration fees, no need to wait for car registration for 6-12 months, free highways, and parking. In Shenzhen alone, taxis switching to electric vehicles will be able to receive subsidies. A 27-year-old customer, who lives in Hangzhou, has been waiting almost a year for a license plate for his petrol car. However, after seeing Xpeng’s G3 electric car, she decided not to wait any longer. “After applying the government subsidy, the car fits my budget of about 180,000 yuan (US$27,643),” she said. The European Union (EU) is also gradually tightening emissions standards and supporting industries on the front lines in the fight against climate change. Much of the support goes to initiatives that push consumers to buy electric vehicles, which in turn drives demand. After applying the government subsidy, the car fits my budget of about 180,000 yuan (US$27,643) A 27-year-old customer in Hangzhou In 2020, sales of new electric vehicles in European countries doubled, accounting for 43% of global sales. Rising momentum has brought the EU over China to become the world’s largest electric vehicle market. For example, Germany subsidizes up to 4,000 euros ($4,874) per BEV and 3,000 euros ($3,656) for PHEVs. The country also built a €1 billion fund for rebates and building charging stations. Meanwhile, France subsidizes 6,000 euros ($7,312) for cars that emit less than 20g of CO2, 5,000 euros ($6,093) per BEV, and nearly 10,000 euros ($12,187.01) for customers who switch from diesel vehicles to BEVs. Similar to France and Germany, Spain, Italy, Sweden, Denmark and Finland also apply different subsidies to electric vehicle customers. Denmark alone reduces sales tax up to 80%. Some major Spanish cities reduce taxes by 75%, while Finland has a minimum tax rate. …to North America Transportation is currently America’s largest source of greenhouse gas emissions. Therefore, US President Joe Biden’s plan to change gasoline cars to electric cars is essential to solving the problems of climate change. Biden’s proposals include incentives of up to $174 billion for electric cars. His plan is to increase discounts for customers who buy electric cars. In addition, the US president plans to push to increase the number of public chargers from 72,000 in 2019 to 500,000 in 2030. He also called for replacing the US government’s fleet of about 650,000 vehicles with models. electricity. Experts of Bloomberg It is estimated that 500,000 chargers may require about 6 billion USD of investment. Part of the $174 billion subsidy will also go directly to consumers to stimulate demand. Along with that are orders for electric vehicles directly from the federal government. To realize his climate ambitions, Mr. Biden needs to benefit as many electric vehicle manufacturers as possible. Bloomberg The above expenses all bring about the same effect. That’s increasing demand to accelerate the electrification of the US auto industry. Previously, the federal government and some states offered tax credits (up to $7,500) and incentives for buying electric vehicles, but the main federal incentive will begin to cut after manufacturers sold 200,000 electric cars. “To realize his climate ambitions, Mr. Biden needs to benefit as many electric vehicle manufacturers as possible.” Bloomberg comment. Meanwhile, the Canadian government requires that all vehicles sold starting in 2040 will produce zero emissions. The province of Québec will ban the sale of new gasoline-powered passenger cars from 2035. British Columbia will completely ban the sale or rental of gasoline-powered cars and trucks by 2040. Norway also introduced subsidy programs to boost sales of electric vehicles, including direct support of 4,000 euros ($4,874) to users, a 50% subsidy on vehicle prices and the cost of station construction and installation. charger for the manufacturer. A plan to change petrol cars to electric cars is necessary to address climate problems. Photo: Reuters. Along with that is a discount on fast charging service, free parking, fees for ships, boats, harbors, and the use of bus lanes; some road and ferry fees are waived. Taxes exempted for electric vehicles in Norway include fuel, road, and vehicle taxes. Meanwhile, Japan also exempts taxes related to vehicle ownership, purchase and tonnage. In 2020, electric car buyers will receive a subsidy of up to $7,700 depending on the vehicle’s battery capacity. According to Dr. Bui Quang Tuan, Director of the Vietnam Institute of Economics, government support is essential if Vietnam wants to develop the electric car industry to catch up with the world’s trends and achieve its goals. on green growth. “The support policy demonstrates the tectonic role of the State, its commitment to accompany businesses so that they can grow up, reach out to the world, and raise the level of Vietnamese people. Behind this policy is a very important political meaning, not just economic support,” said Dr. Bui Quang Tuan, Director of the Vietnam Institute of Economics.