Di Yi Cai Jing Zi Xun·2025-10-12 15:13Core Viewpoint - The high costs associated with owning and operating a car in Hong Kong make it a luxury choice, leading to a low vehicle ownership rate despite the presence of electric vehicles gaining popularity [1][3][5]. Summary by Sections Transportation Costs - Public transportation in Hong Kong is highly developed, making car ownership less appealing due to high costs associated with parking, fuel, and vehicle purchase [1]. - Parking costs in Hong Kong range from 30 to 40 HKD per hour, while fuel prices are stable at 27 to 30 HKD per liter, resulting in a fuel cost of 270 to 300 HKD for every 100 kilometers driven [1]. Vehicle Purchase Costs - The first registration tax for purchasing a vehicle in Hong Kong is significantly high, with rates escalating based on the vehicle's taxable value. For example, a vehicle priced at 300,000 HKD incurs a tax of approximately 198,000 HKD, making the total cost nearly 1 million HKD [3][5]. - The tax structure is as follows: 46% for the first 150,000 HKD, 86% for the next 150,000 HKD, 115% for the next 200,000 HKD, and 132% for any amount exceeding 500,000 HKD [5]. Electric Vehicle Market - Despite the high costs of traditional fuel vehicles, electric vehicles (EVs) are becoming increasingly popular in Hong Kong, with brands like Tesla and BYD leading the market. BYD surpassed Tesla in sales in the first half of 2025, with a total of 18,356 registered electric private cars, achieving a penetration rate of 68.6% [5][6]. - The Hong Kong government is actively promoting EV adoption through tax incentives, including a two-year extension of the first registration tax reduction for electric vehicles until March 31, 2026 [6]. Tax Incentives and Policies - The new tax reduction rules for electric vehicles include a cap on the maximum tax reduction amount, which has been lowered for general electric vehicle owners and those participating in the "one-for-one" program [6]. - The "one-for-one" program allows owners to scrap an old vehicle to receive a tax reduction on a new electric vehicle, with specific eligibility criteria that must be met [6][7]. Charging Costs - Electric vehicles also benefit from lower operational costs, with charging fees in Hong Kong being competitive. Charging can be billed at 30 HKD per hour or at a rate of 3 HKD per kilowatt-hour at fast charging stations [9].