Chinese Government Tightens Hybrid Car Subsidies, New Conditions Introduced

The Chinese government has just made new rules regarding the distribution of incentives for hybrid cars next year.

Chinese Government Tightens Hybrid Car Subsidies, New Conditions Introduced
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For your information, this new provision will take effect on January 1, 2026, with a transition period until the end of 2025.

Different from Indonesia

As a reminder, the Indonesian government also provides incentives for the purchase of hybrid cars.

As stated in the Minister of Finance Regulation Number 12 of 2025. It has been in effect since February 4, 2025.

Chery Claims Its Two New Hybrid Cars Have Booked Thousands of SPK
Photo : Chery

It explains that hybrid-powered four-wheeled vehicles must meet a minimum Local Component Level (TKDN) requirement of 40 percent.

If they successfully meet this provision, they are entitled to a Luxury Goods Sales Tax Borne by the Government (PPNBM DTP) incentive of three percent until December 2025.


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