Core Insights - The high cost of owning a car in Hong Kong makes it a luxury choice, with significant expenses in parking, fuel, and taxes [1][3][5] Transportation Costs - 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, leading to a fuel cost of 270 to 300 HKD for every 100 kilometers driven [1] - The overall cost of owning a car is further exacerbated by high taxes, particularly the first registration tax, which can reach up to 132% depending on the vehicle's taxable value [3][5] Electric Vehicle Market - Despite the high costs associated with traditional fuel vehicles, electric vehicles (EVs) are gaining popularity, with Tesla and BYD being prominent brands. BYD surpassed Tesla in sales in the first half of 2025, with a total of 18,356 electric private cars registered, achieving a penetration rate of 68.6% [5][6] - The Hong Kong government is actively promoting EV adoption through tax incentives, including an extension of the first registration tax reduction for EVs until March 31, 2026 [6][7] Tax Incentives and Policies - The first registration tax reduction for general electric private car owners has been adjusted, with the maximum reduction amount decreasing from 97,500 HKD to 58,500 HKD. For those participating in the "one-for-one" scheme, the maximum reduction is now 172,500 HKD [6][7] - The "one-for-one" scheme requires strict conditions, including the scrapping of an eligible old vehicle, which must have been registered in Hong Kong for at least six years [6][7] Cost Comparison - For example, the Tesla Model Y has a base price of 282,800 HKD, and after applying the current tax rules, the total cost comes to 407,508 HKD. However, through the "one-for-one" scheme, the price can be reduced to 293,508 HKD, saving approximately 114,000 HKD in taxes [7] - Charging costs for EVs are also favorable, with rates at public charging stations ranging from 21 to 30 HKD per hour or 3 HKD per kilowatt-hour at fast charging stations [9]