China cuts its export tax rebate on electric cars from April 2027

On 1 April 2027 China will lower the value-added tax it refunds on exported new-energy vehicles from 13% to 9%, the finance ministry and the tax administration announced on 12 October. The product list names cars driven only by electric motors and plug-in hybrids, so it covers the cars XPeng ships abroad, battery and range-extender alike. Under China’s export tax rules, the gap between the tax rate and the refund rate counts as a cost of the exported goods, and from April that gap widens by four percentage points. For scale, XPeng exported 59,479 cars and kits in the first nine months of 2026, twice as many as a year earlier, and 25.1% of its first-half revenue came from outside China. Citi puts the added cost at 1.6%–2% of overseas retail prices, an industry estimate reported by China Business Journal on 16 October, with no XPeng-specific figure. XPeng has not yet said what the change means for its prices or margins abroad; its third-quarter results are expected in November.