Electric vehicle sales surge as tax breaks set to slash

Many rushed to purchase electric private cars as the first registration tax concessions for EVs will be reduced by 40 percent starting in April.

As announced in the Budget, the registration tax concessions will be extended for two years but with a reduction of 40 percent. EVs priced over HK$500,000 will no longer be eligible for the concessions.

As a result, many customers decided to purchase EVs before the new arrangement took effect, leading to a 30 percent increase in EV sales in March, according to car dealers.

Law Ho-kin, the operation director at an automobile dealership, commented that most of their customers were eligible for the scheme, and the tax incentives helped them make a quick purchasing decision.

He said the company recorded a one-third increase in EV sales in March compared to previous months.

Law said that the EV sales account for approximately 40 percent of their total business. 

Sung, an EV owner, said some of his friends had already taken advantage of the "One-for-One Replacement Scheme" and bought a new car before the deadline. 

Under the "One-for-One Replacement" scheme, the maximum first registration tax concession for electric private cars will be adjusted to HK$172,500 from the previous HK$287,500. The concession ceiling for general electric private cars will also be lowered to HK$58,500.