Core Viewpoint - The Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration of China jointly issued an announcement regarding the adjustment of technical requirements for new energy vehicles (NEVs) to be eligible for vehicle purchase tax exemptions starting January 1, 2026, aiming to enhance the performance standards for electric and plug-in hybrid vehicles [1][2]. Group 1 - The new technical requirements for plug-in hybrid vehicles include a significant increase in the pure electric driving range, which must now meet a minimum of 100 kilometers, up from the previous requirement of 43 kilometers, representing a 132.6% increase [1][2]. - The announcement specifies that the fuel consumption and energy consumption limits for vehicles will be categorized based on their curb weight, with stricter standards for vehicles weighing less than and above 2510 kg [2]. - Data from the China Automobile Dealers Association indicates that in the first half of this year, pure electric vehicles held a market share of approximately 60.9%, while plug-in hybrids accounted for about 29.3%, and range-extended vehicles made up around 9.8% of the market [2]. Group 2 - The Secretary-General of the Passenger Car Market Information Joint Conference believes that the adjustments are necessary to keep pace with the rapid advancements in NEV range and engine technology, ensuring that policies align with technological developments [3]. - The adjustments aim to raise technical barriers, encouraging companies to increase R&D investments, phase out outdated products, and shift the industry focus from scale expansion to high-quality development, thereby stabilizing long-term policy expectations for enterprises [3].