CPCA secretary-general Cui Dongshu said at a monthly analysis meeting the trend
toward larger new-energy vehicles is "extremely bad," wastes resources, and is
not checked by the current fiscal and tax framework. He noted petrol automakers
historically restrained large SUVs via displacement taxes — cars above 2.5L
faced a 25% levy — while new-energy vehicles currently receive uniform tax
treatment regardless of curb weight or power, which fails to curb upsizing and
excessive power. He proposed establishing an economy-car standard to encourage
ordinary consumer purchases and using tax and energy-consumption measures to
guide and limit vehicle upscaling.
