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Ideanomics applauds China's latest efforts to support electric vehicle adoption

Chinese premier Li Leqiang put forth measures that will see the nation extend new energy vehicle subsidies for two years

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Ideanomics is opening a new MEG Center in Qingdao on May 1 to help commercial fleet customers transition to electric vehicles

Ideanomics Inc (NASDAQ:IDEX) told shareholders Tuesday that its electric vehicle division is poised to get a boost from new subsidies and tax incentives recently introduced in China.

In a state council meeting earlier today, Chinese premier Li Leqiang put forth measures that will see the nation extend new energy vehicle subsidies for two years.

The central government will also compensate for the replacement of diesel vehicles in major population centers like Beijing, Hebei and Tianjin and remove used car VAT tax until the end of 2023.

READ: Ideanomics establishes two new businesses to capitalize on China's trillion dollar investment in infrastructure

The measures benefit New York-based Ideanomics’ electric vehicle division Mobile Energy Global (MEG) in a number of ways, according to the company.

Ideanomics estimates that China has over 11 million heavy-duty trucks and off-road vehicles, 14 million light delivery logistics trucks, 1.8 million buses, and 1.1 million taxis and rideshare electric vehicles, which have an estimated combined market value of RMB 11.2 trillion (US$1.6 trillion).

The extension gives fleet operators and manufacturers more time to secure financing and boost production after the coronavirus pandemic put a halt on most operations in China.

"This stimulus package goes beyond what we were anticipating and provides a strong foundation to support our MEG business objectives in 2020," said Alf Poor, CEO of Ideanomics in a statement.

"We applaud these measures and will be working quickly and efficiently to help our commercial fleet customers understand the new economic measures put in place today and how these measures can further incentivize the transition to EV from fossil fuel vehicles.”

In addition to its Beijing office, Ideanomics is opening a new MEG Center in Qingdao on May 1 to help commercial fleet customers transition to electric vehicles.

The Center will provide both new and used electric vehicles as well as financing, licensing, and insurance services.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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NASDAQ:IDEX
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