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China Considers Extending Electric-Car Tax Exemptions, State TV Says

Car sales in China have slowed as the country battled Covid-19 outbreaks with strict lockdowns that sapped consumer spending.

Car sales in China have slowed as the country battled Covid-19 outbreaks with strict lockdowns that sapped consumer spending.

Photographer: Qilai Shen/Bloomberg
Updated on

Shares of Chinese automakers jumped after state television reported Wednesday evening that the government may extend tax exemptions on electric-car purchases in a bid to boost the auto sector.

Li Auto Inc. soared as much as 8.7% in Hong Kong, Xpeng Inc. added 6.2% and BYD Co. rose 2.5%. Singapore-traded shares of Nio Inc. gained 4%. Suppliers including Changzhou Xingyu Automotive Lighting Systems Co. and Tianrun Industrial Technology Co. also gained, while battery giant Contemporary Amperex Technology Co. Ltd. rose up to 3.2% in Shenzhen after a share sale