China's Ministry of Finance and State Taxation Administration announced on October 12 that the value-added tax (VAT) export rebate rate for new energy vehicles will be lowered from 13% to 9% effective April 1, 2027, as part of a broader adjustment to export rebate policies for selected products.
Under the announcement, export VAT rebates for e-cigarette devices and related apparatus will also be cancelled from the same date. For products subject to consumption tax, the existing export consumption tax rebate (exemption) policy will remain unchanged. The applicable rebate rate will be determined by the export date indicated on the customs declaration for the exported goods.
Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), commented that the NEV export rebate reduction leaves a long buffer period and represents a structural policy optimization within expectations rather than a wholesale tightening of export support, since the consumption tax rebate policy remains intact. He noted the change is aimed at optimizing the export rebate structure.
Industry analysts say the move is expected to discourage low-price competition among NEV makers and push the auto industry's globalization drive from scale expansion toward higher-quality development. Companies with high export exposure will need to rebalance cost and pricing strategies, with localization and product upgrades serving as key hedges during the transition period. Battery makers, component suppliers, and export service chains are also watching the policy shift closely.
