Auto Group Chief Says Trump’s Megabill Is A Win For Chinese EV Makers: Report

The head of a Chinese auto industry group is reportedly of the opinion that President Donald Trump’s tax bill is a win for Chinese EV companies globally, as it favors gasoline-powered cars over electric ones.

The tax bill, which was signed into law by President Trump on July 4, ends tax incentives for electric vehicle purchases on Sept. 30. This includes the $7,500 incentive on the purchase of a new EV and $4,000 incentive for a used EV.

China Passenger Car Association (CPCA) secretary-general Cui Dongshu said that the U.S. bill should give China greater room to develop in overseas markets, as reported by the Wall Street Journal. Dongshu sees Chinese homegrown brands’ exports having significant growth in the next few years as Chinese companies offer “intelligent EV models against the obsolete technology of internal-combustion-engine vehicles.”

According to data from the group, new energy vehicle exports from China jumped 48% in the first half of 2025 as compared to the corresponding period of 2024. New energy vehicles is a collective term used to refer to battery electric vehicles and plug-in hybrids.

Chinese EV makers, including Tesla Inc. rival and Chinese EV giant BYD Co., are looking to increase exports in a bid to increase sales amid mounting competition within their home market.

Trump, however, has termed the provisions of the bill as an end to the “EV Mandate which would have forced everyone to buy an Electric Car in a short period of time.”

“People are now allowed to buy whatever they want - Gasoline Powered, Hybrids (which are doing very well), or New Technologies as they come about - No more EV Mandate,” Trump said in a post on Truth Social over the weekend.

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