In November, a total of 65,946 vehicles were registered in Shanghai, with passenger NEVs contributing 67 percent.
Shanghai today announced its policy for issuing new energy vehicle (NEV) licenses for 2024, with the current policy set to expire at the end of the year.
The city will continue to offer free license plates for battery electric vehicles (BEVs) and fuel cell vehicles registered in the city, largely extending a policy implemented in 2023, according to a document from the city government today.
Shanghai is home to Nio's (NYSE: NIO) global headquarters and Tesla's (NASDAQ: TSLA) China plant, and the favorable policy has made the city one of China's top cities for NEV penetration.
In November, a total of 65,946 vehicles were registered in Shanghai, of which 44,187 were passenger NEVs, contributing 67 percent, according to the Shanghai Economic Information Center.
While the current policy has largely been renewed, the city has tightened the conditions needed for applicants to be approved.
In 2023, applicants will need to have paid social insurance or personal income tax in Shanghai for a total of 12 months in the past 24 months. Next year, applicants will need to have paid social insurance or personal income tax in Shanghai for 36 consecutive months.
Meanwhile, residents who have registered fuel vehicles in Shanghai will not be able to get free EV-only license plates, although they can use their existing fuel license plates for new EV models.
The new policy is valid for one year, ending on December 31, 2024.
Shanghai has provided free license plates for NEVs, including plug-in hybrids (PHEVs), BEVs, and fuel cell vehicles, for many years.
Starting January 1, 2023, the city was not offering free license plates for PHEVs, including extended-range electric vehicle (EREV) models.
Given that fuel cell vehicles are virtually unavailable in China for general customers, Shanghai residents have essentially only been able to get free license plates when they buy BEVs this year.
Shanghai has adopted an auction system for license plates for traditional fuel vehicles, and the number of people attending the auctions has continued to decline as EVs have become more widely accepted.
In November, the number of people attending Shanghai's license plate auctions was 75,838, a new low since March 2014, according to monthly auction data monitored by CnEVPost.
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