EVs: VW's new ID. Buzz, China extending tax incentives

As the EV revolution in the auto industry continues, Yahoo Finance's Pras Subramanian breaks down China's decision to extend its EV tax incentive amid declining sales. He also takes a look at Volkswagen's new ID. Buzz EV.

Video Transcript

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- Shares of EV makers is riding higher today on news that China is set to extend tax incentives for electric vehicles. Yahoo Finance's Pras Subramanian is following the story and joins us now for more. Pras?

PRAS SUBRAMANIAN: Yeah, good news for these Chinese EV makers like Xpeng and Li Auto and NIO even. China's going to potentially extend some of the tax breaks that they have for these EV. So usually there's a 10% tax on new cars. They have sort of ended that for a while, and they're going to restart it in 2023.

They extended it to the end of the year to give a little relief for these automakers. Now there's talks that might extend for over four years. So big deal for cars in the 300,000 new on range or like 42,000. So non luxury EVs they want to kind of stir the kind of incentives there, because car sales are decelerating actually.

Believe it or not China's biggest market decelerating overall compared to a year ago. But EV sales are still higher, but not as high as they were last year. So it's a little bit of concern there. But they're trying to stir that up. Good news for EV makers going forward.

- Speaking of some EV makers, there's some buzz about Volkswagen's new or revamped microbus. Are you a fan?

- I've always been skeptical of it.

- I know.

PRAS SUBRAMANIAN: So I've always been kind of like they're cute, they're interesting, very odd cars.

- Cute. That is a good way to put it. Odd with the engine in the back and the floor of the van, really tiny, like microbus. So they're bringing that back. They announced it about a year ago. But this is-- they're announcing today the new three row version just for the North American market. It's such an important key market demographic there. Three row SUVs. This retro style sort of car here, dual motor or motor in the back, really cool like fake air vents in the back, kind of hearkening back to when the motor was back there, the sliding, both power sliding electric doors, quirky little light bar in the front.

So yeah, there you see the part of the window right there. So really fun design there. I think it might sit well here in the US, especially with three row customers.

- Yes, it has a very retro kind of look to it but made for a new age.

- Yeah. Yeah. A lot of fun colors too. Yeah.

- Indeed. All right, Pras Subramanian, thank you so much, Pras.