[SMM Hydrogen Policy Update] MIIT and Two Other Ministries: Adjust Technical Requirements for Fuel Cell Vehicle and Vessel Tax Reduction and Exemption, Effective from January 1, 2026

On September 29, 2025, the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration jointly issued the "Announcement on Adjusting the Technical Requirements for Energy-Saving and New Energy Vehicle Products Eligible for Vehicle and Vessel Tax Incentives," which will take effect on January 1, 2026. The announcement adjusts the technical requirements for energy-saving and NEVs eligible for vehicle and vessel tax incentives and will have a significant impact on the development of the fuel cell automotive industry.

The announcement specifies the technical requirements for fuel cell commercial vehicles, namely:the rated power of the fuel cell system must be no less than 50 kW,andthe ratio of the rated power of the fuel cell system to the rated power of the drive motor must be no less than 50%,;the fuel cell start-up temperature must be no higher than -30°C;the rated power density of the fuel cell stack must be no less than 2.5 kW/L,and the rated power density of the system must be no less than 300 W/kg; the pure hydrogen driving range must be no less than 300 kilometers.

I. Accelerated Technological Upgrading in the Fuel Cell Automotive Industry

The technical requirements set forth in the announcement will drive the fuel cell automotive industry toward higher technological standards. Strict regulations on fuel cell system power, start-up temperature, and power density, among other aspects, will encourage enterprises to increase R&D investment and enhance their technological capabilities. This will help fuel cell vehicles achieve greater breakthroughs in performance and reliability, promoting technological upgrading within the industry.

II. Higher Industry Entry Thresholds Promote Market Standardization

The new technical requirements raise the threshold for fuel cell vehicles to qualify for vehicle and vessel tax incentives, which will serve to screen the market. Models that do not meet the requirements will gradually be phased out, while products with advanced technology and high quality will receive more policy support. This will help standardize the fuel cell vehicle market and promote the healthy, orderly development of the industry.

III. Policy Transition Ensures a Smooth Implementation

To ensure a smooth policy transition, the announcement stipulates that for applications completed by enterprises before January 1, 2026, the relevant technical requirements will continue to be implemented in accordance with Document Cai Shui [2018] No. 74 and Announcement No. 10 of 2024. Prior to the announcement of the new Catalog, energy-saving and NEVs that have been included in the fourth to eighty-first batches of the Catalog, regardless of whether they have been transferred, may continue to enjoy the vehicle and vessel tax reduction and exemption incentives. Starting from January 1, 2026 (inclusive), new applications for energy-saving and NEV models to enjoy the vehicle and vessel tax incentives must comply with the technical requirements specified in this announcement. Eligible models will be included in the new "Catalog of Energy-Saving and New Energy Vehicle Models Eligible for Vehicle and Vessel Tax Reduction and Exemption Incentives." This policy transition mechanism safeguards the legitimate rights and interests of enterprises and facilitates the smooth implementation of the policy.

This adjustment by the three departments to the technical requirements for energy-saving and new energy vehicle products eligible for vehicle and vessel tax incentives reflects the state's guidance and support for the development of the NEV industry. It will further promote technological advancement and market standardization in the fuel cell automotive industry, contributing to the high-quality development of China's NEV sector.