Keep an eye on this figure when buying a plug-in hybrid vehicle. You may have to spend tens of thousands of yuan more next year.
The Announcement on the Technical Requirements for New Energy Vehicle Products Eligible for Vehicle Purchase Tax Exemption and Reduction from 2026 to 2027 (hereinafter referred to as the Announcement) was recently released, adjusting the technical requirements for pure - electric passenger vehicles and plug - in (including range - extended) hybrid passenger vehicles. The Announcement will be officially implemented on January 1, 2026.
Which existing models will be affected?
“Some joint - venture plug - in hybrid vehicles may face greater pressure”
The aforementioned Announcement puts forward new requirements for the power consumption of pure - electric passenger vehicles, as well as the pure - electric range, power consumption, and fuel consumption of plug - in (range - extended) hybrid passenger vehicles. Focusing on the field of plug - in (range - extended) hybrid passenger vehicles, their pure - electric driving range should meet the requirement that the conditional equivalent all - electric range is not less than 100 kilometers, and the thresholds for fuel consumption under power - depleted conditions and power consumption per 100 kilometers are higher than previous standards.
Public information shows that the calculation of the equivalent all - electric range (EAER) is based on the WLTC (Worldwide Harmonized Light Vehicle Test Cycle) test process. The latter is an automotive energy consumption and emission test standard jointly formulated by the United Nations and multiple countries in 2017. The test results are closer to actual driving conditions, but the range value is lower.
In terms of data sources, the data publicly disclosed by the Ministry of Industry and Information Technology are all based on WLTC, while car companies tend to use CLTC (China Light - Duty Vehicle Test Cycle). The latter is an electric vehicle range test standard designed by China for road environments, and the value is higher than that of WLTC.
In the view of Zhang Hong, a member of the Expert Committee of the China Automobile Dealers Association, some existing plug - in hybrid models such as BYD Qin series, Geely Galaxy L7/L6, Chery Fengyun A8, etc., currently have a pure - electric range of mostly 50 - 80 kilometers for their low - end versions. If they cannot be quickly upgraded, they will lose the eligibility for vehicle purchase tax exemption and reduction, and their competitiveness will decline significantly.
According to the top 20 list of plug - in hybrid vehicle sales in August released by Dongchedi, the pure - electric range (WLTC) of the low - end versions of 15 models will not meet the new regulations.
For example, the BYD Qin PLUS DM - i, which ranks first in sales, has a minimum pure - electric range of 43 kilometers. The Geely Galaxy A7, which ranks 6th, has a minimum pure - electric range of 55 kilometers. The Changan UNI - Z PHEV, which ranks 16th, has a minimum pure - electric range of 95 kilometers.
The guiding prices of the above - mentioned on - sale models (all low - end versions) that do not meet the new regulations are in the range of 80,000 - 150,000 yuan. If roughly calculated based on the current invoice prices provided by dealerships, the exempted vehicle purchase tax is 6,000 - 13,000 yuan.
“Previously, we produced models with relatively low range mainly to control costs. Now that the Announcement is out, the range of future models will definitely be higher than the standard. In fact, since the second half of this year, most of the models we have launched are above the new standard,” a relevant person in charge of an independent car company told China News Service.
Car companies such as SERES and SAIC Volkswagen told China News Service that their on - sale products meet the new standards. Among them, SAIC Volkswagen said that there are no in - production models affected. According to the Announcement issued by the three departments, SAIC Volkswagen's relevant in - production products meet the technical requirements.
From the above - mentioned top 20 list, the low - end versions of 12 short - listed models were launched before July 2025. Only the low - end versions of the Geely Galaxy A7, Haima 06 DM, and Haval Raptor PHEV were launched in the second half of the year. However, the officially announced minimum pure - electric range (CLTC) of the Haima 06 DM and Haval Raptor PHEV is over 100 kilometers.
According to statistics from Cui Dongshu, the secretary - general of the China Passenger Car Association, in the field of plug - in hybrid vehicles, the proportion of models with a pure - electric range of less than 100 kilometers was 54% in 2024. In the first three quarters of 2025, this figure dropped to 26%. In the field of range - extended vehicles, the proportion of models with a pure - electric range of less than 100 kilometers was 6% in 2024 and dropped to 2% in the first three quarters of 2025.
According to the two batches of the Catalogue of Energy - Saving and New Energy Vehicle Models Eligible for Vehicle and Vessel Tax Exemption and Reduction disclosed by the Ministry of Industry and Information Technology since September, a total of 54 plug - in hybrid passenger vehicles enjoy the vehicle and vessel tax exemption policy. Among them, only 3 products have a low - end version with a pure - electric range (WLTC) of less than 100 kilometers, namely the Geely Galaxy M9, Geely Galaxy Starship 7, and Chery iCAR V27.
“Car companies can meet the requirements by optimizing battery capacity, improving electronic control efficiency, etc. It is expected that most leading car companies can make adjustments quickly, while some old plug - in hybrid models of joint - venture brands may face greater pressure,” Zhang Hong said.
Cui Dongshu posted an article on the 10th, saying that the technical requirements for pure - electric passenger vehicles are relatively moderate. The improvement of the power consumption index is mainly a guiding measure for medium - and large - sized electric vehicles to ensure a continuous reduction in the power consumption of large vehicles and achieve the goal of high - integration, low - power - consumption, and lightweight large - sized pure - electric vehicles.
“Currently, pure - electric vehicles weighing more than 2,710 kilograms face greater pressure in terms of power consumption. In particular, large - sized pure - electric SUVs need to improve their design to reduce power consumption. This policy is beneficial for changing the trend of over - sized, over - tall, and over - heavy SUVs among domestic electric vehicles,” Cui Dongshu said in the article.
Zhang Hong also holds a similar view. He said that some models with high power consumption and large vehicle weight, such as some large - sized pure - electric SUVs, need to improve their technology to meet the standards, but the overall impact is relatively small because most car companies have already regarded power consumption control as a core indicator.
When talking about typical models facing the risk of being eliminated, Zhang Hong believes that plug - in hybrid models with a pure - electric range of less than 100 kilometers and unable to be quickly upgraded, such as some old plug - in hybrid models of joint - venture brands, may accelerate their exit from the market due to the loss of vehicle purchase tax incentives. In addition, high - power - consumption pure - electric models with power consumption significantly higher than the national standard limit and difficult to meet the standards through technical improvement may face elimination.
“It may cause short - term fluctuations in demand”
Will the new regulations have an impact on the existing new energy vehicle terminal market?
Zhang Hong believes that it may cause short - term fluctuations in demand. Before the implementation of the new regulations, car companies may launch promotional activities such as “covering the vehicle purchase tax” to stimulate consumers to buy cars in advance. Some consumers may choose to buy existing models before the end of 2025 due to concerns about increased subsequent car - buying costs.
In Zhang Hong's view, in the long run, the market will become more rational. The new regulations aim to promote technological upgrading. Consumers will pay more attention to the technical parameters of models and tend to choose models that meet the new regulations and have better performance. Therefore, the clearance may be more concentrated on some models that do not meet the new regulations, rather than the entire existing new energy vehicle market.
File photo taken by China News Service
Lang Xuehong, the deputy secretary - general of the China Automobile Dealers Association, believes that some products will no longer be included in the vehicle purchase tax exemption policy catalogue next year, and their market competitiveness will decline sharply. In this context, relevant car companies will definitely accelerate the digestion of sub - standard products with pre - stocked raw materials.
What new changes can consumers perceive in new energy products after January 1, 2026?
“First, there will be obvious changes in the range of plug - in hybrid vehicles, and the stability of the range at low temperatures will be enhanced. Consumers can choose plug - in hybrid models with a more reliable pure - electric range. They can basically rely on pure - electric driving for daily commuting, reducing their dependence on fuel. Moreover, the policy requires that the range attenuation rate at low temperatures (- 7°C) should not be higher than 35%, so car companies need to upgrade their battery thermal management technology. Future models will have more stable range performance in winter, and the range anxiety of users in the north is expected to be alleviated,” Zhang Hong analyzed.
In terms of energy consumption, Zhang Hong believes that the energy consumption standards will be more stringent. High - energy - consumption “electric tigers” will be eliminated from the market, and consumers' usage costs will be lower. In terms of model selection, he said that only models that meet higher technical requirements can enjoy the vehicle purchase tax exemption policy. Models with backward technology, short range, and high energy consumption will gradually withdraw from the market, and consumers can choose from better - quality and more energy - efficient models.
“After 2026, the new energy vehicle market will pay more attention to technical quality. Consumers can buy models with more reliable range, lower energy consumption, and more advanced technology. Their car - buying choices will focus more on high - performance products. At the same time, under the guidance of policies, industry competition will be more intense, and consumers are expected to enjoy better - quality products and services,” Zhang Hong summarized.
What new changes will occur on the car - company side next year?
“This policy mainly accelerates the elimination of backward production capacity by raising the technical threshold. Products need to have a higher technical level to meet the new requirements and be competitive under this standard. In fact, what this tests is not the future technical level of car companies, but their current level,” Lang Xuehong analyzed.
Lang Xuehong believes that consumers are generally price - sensitive, which requires manufacturers to absorb the increased costs, keep product prices unchanged, or even have room for price cuts. For companies without the ability to absorb these costs, they may be eliminated next year. “The current technical level determines the survival of car companies next year. If a car company fails to reach the new technical level now, it must accelerate its technological investment. However, it takes time for the market to convert this investment, and by then, it will be difficult for the car company to stay in the game.”
Zhang Hong believes that the new policy will have a positive impact on the long - term development of the automotive industry. The new policy will optimize the market competition environment, eliminate models and enterprises with backward technology and low quality, reduce market chaos, and create space for high - quality products, thereby enhancing the overall competitiveness of the industry. Leading enterprises can consolidate their positions with their technological advantages, while small and medium - sized car companies need to accelerate technological upgrading, otherwise, they may face a shrinking market share.
This article is from the WeChat official account “China News Service” (ID: jwview). Author: Gong Chenyuan, Editor: Li Xiaoxuan. Republished by 36Kr with permission.