Tesla Model 3 Standard Range+ Now Exempt from China Purchase Tax

A shot inside Tesla Shanghai store on November 2nd, the day of Shanghai’s “outside the city” policy passing. Photo: Twitter user @ray4tesla

Demand for electric vehicles (EVs) is at an all-time high right now, especially in the world’s largest auto market, China.

China’s Ministry of Industry and Information Technology (MIIT) has made the popular Tesla Model 3 Standard Range+ (SR+) exempt from purchase taxes, as reported by Tesmanian. The news, which was announced March 10, came on the heels of the MIIT’s release of the New Energy Vehicle Tax Free Vehicle Catalog, which included the Model 3 SR+.

The specific price of the Tesla made-in-China (MIC) Model 3 without purchase tax has not yet been announced. In February, Tesla China sold 18,318 EVs out of its Shanghai factory, representing an 18.3% growth from its sales in January.

Other companies like Xpeng Motors and NIO saw major declines in sales from January to February, just as Tesla’s Model Y sales increased threefold following a nearly-30% price cut of the SUV model.

The Chinese government has helped expand the country’s EV infrastructure through the addition of charging stations, battery recycling plants, and a few different government incentives for buying electric.

Similarly, Tesla announced its 760th Supercharger station in China earlier this month, marking over 300 cities across mainland China that feature the company’s fast-charging EV stations.