According to the data of the China Association of Automobile Manufacturers, the output and sales of new energy vehicles (NEVs) topped 1.36 million in 2020, hitting a record high. Sichuan and Chongqing, as one of the six auto manufacturing bases in China, are an ideal place for NEV companies to grow. How to boost the NEV industry in south west China? Zhang Xingming, a member of the CPPCC Chongqing Municipal Committee, Co-Founder of the Sokon Group, and Secretary of the Communist Party of China (CPC) Sokon Group Committee, and Liu Changdong, a deputy to the Chongqing Municipal People's Congress and Chief Operating Officer of the Sokon Group, gave their suggestions.

EREVs be exempt from consumption tax

Zhang mentioned in his proposal that the NEV industry has a promising future, as the General Office of the State Council issued the China New Energy Vehicle Industry Development Plan (2021-2035), which clearly states: "To further innovation in-vehicle integration technologies. Taking battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), including EREVs, and fuel cell vehicles (FCVs) as three levers to develop the innovative chain of vehicle technologies." It can be seen that EREV technological innovation has been incorporated in the country's future industrial development plan.

Although EREVs have a longer driving range with the full-time electric drive, problems have risen in consumption tax, which confuses companies.

Zhang suggested that relevant departments of the Chongqing Municipal People's Government appeal to the National Development and Reform Commission, Ministry of Finance, and State Taxation Administration for the recognition of EREVs as electric vehicles, which can lead to the exemption of consumption tax, to realize high-quality development of the NEV industry and the country's NEV industrial development plans.

More electric cargo vans in rural areas

E-commerce and express delivery have widely accepted in communities and rural areas, which fuels the integrated development of offline and online shopping and improves the consumption level in the countryside. In the era of online shopping, express delivery between urban and rural areas is frequent. Urban-rural integrated growth promotes the exchanges of goods and people.

Liu thought that the production and supply of grain and important agricultural and sideline products, accelerated development of rural industries, and solidification of the fundamental support of modern industrial development is essential for rural revitalization and alignment of poverty alleviation achievements and rural revitalization. All of these should be based on the establishment of a modern logistics system covering cities and the countryside.

Liu considered that rural revitalization needed environmentally-friendly and energy-saving vehicles that are suitable for the beautiful countryside, apart from developed transport infrastructure. Electric cargo vans are clean, beautiful, and agile, able to play a vital role in the "last-mile" delivery in rural areas. With the implementation of such policies as an introduction of vehicles to rural areas, the offering of subsidies to NEVs, and issuing of licenses to NEVs, electric cargo vans are attractive to consumers in rural areas as they enjoy low-cost, many favorable policies, and other advantages. Thus, he suggested encouraging the utilization of electric cargo vans in the countryside, as a way to protect the environment.