Commercial EV use needs boost after car owner tax break ends, green groups say

Hong Kong is pivoting its electric vehicle strategy after a decade of substantial public investment. Financial Secretary Paul Chan announced the end of the First Registration Tax (FRT) concession for private EVs, including the 'One-for-One Replacement Scheme,' which offered up to HK$172,500 per vehicle. The rationale is that the market has reached maturity: EVs now constitute 70% of new registrations, model variety has expanded, and prices have fallen. The scheme, in place since 2018, has cost the public purse approximately HK$30 billion and incentivized the registration of over 128,000 electric cars.

Environmental groups have endorsed the government's decision, agreeing that subsidies for private ownership are no longer the priority. Instead, they are calling for a strategic shift to accelerate the electrification of commercial vehicles—such as trucks, buses, and taxis—and to significantly enhance public charging infrastructure. This move reflects a broader policy evolution from kickstarting consumer adoption to tackling the harder sectors of decarbonization, where fleet turnover and infrastructure demands present different challenges. The focus now turns to whether new policies and investments will emerge to drive this next phase of Hong Kong's transport electrification.