Tesla owners in China ask for refunds after the firm scored a 10% tax break


On: Sep 2019

Tesla customers in China are climbing to search if they can receive a refund after the famous electric car firm scored a tax break from the government last week. Chinese authorities excepted Tesla’s vehicles from a 10 percent purchase tax by creating the electric car maker the 1st foreign manufacturer to obtain the benefit without a domestic joint venture partner. With the electric vehicle developer stressing the increased importance of enlargement in China, the exemption declaration buoyed shares of Tesla.

Chinese Ministry of Industry and Information Technology (MIIT) reported that dozens of battery-electrics and plug-in hybrid car makers qualified for the tax break. That list contains Daimler and Toyota which have local partners along with national firms such as Guangzhou Auto, SAIC Motor, Geely and NIO. But reportedly, the customers are not sure if they are eligible for the refunds or whether the tax break applies only to new buyers.

While, on the other hand, some customers in China complained that the electric car maker should have warned them that a tax exemption may occur, and therefore they have postponed purchases and qualified for the agreement. But Tesla’s China head, Zhu Xiaotong told that Tesla China could not make details about its application for the exemption public.

It is also said that frustrated Tesla customers have taken to WeChat to had a discussion about the issue and the consumers have sent official letters to the Tesla offices wanting refunds. The CEO of JL Warren Capital, Junheng Li said that numerous consumers want clarification from the Chinese government, not from Tesla China.

She told that the havoc is not Tesla’s fault, as the firm would not have known much about the tax break ahead of the official announcement of the government on Friday. Reportedly, Tesla didn’t react to requests for comment.