[Automotive Knowledge] How effective is the government’s policy on promoting new energy vehicles?
⚡🚙 [Editor's View] Review of the effectiveness of the Hong Kong government's policy to promote new energy vehicles
In recent years, electric vehicles (EVs) and hybrids have become increasingly common on Hong Kong streets, leading many to believe that the government's promotion of new energy vehicles has been quite successful. But is the reality truly that rosy? This article examines the policy background, practical measures, data, and impacts.
📜 1. Policy Background
Hong Kong has long suffered from high fuel prices, limited road space, and air quality affected by traffic pollution. The government has always been committed to promoting more environmentally friendly means of transportation.
New energy vehicles (NEV) in Hong Kong mainly include:
- Pure electric vehicles (EVs)
- Plug-in hybrid electric vehicle (PHEV)
- Hydrogen fuel cell electric vehicles (FCEVs) (very rare at the moment)
The main objectives of the government's policy are:
- Reducing carbon emissions from road transport
- Improve air quality
- Achieving carbon neutrality by 2050 in line with the Hong Kong Climate Action Blueprint
🛠 2. Main promotion measures
1. Tax incentives
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First Registration Tax Reduction :
- The "One-for-One Scheme" was implemented in 2018, allowing people who scrap their old private cars and replace them with electric vehicles to enjoy a first registration tax reduction, with a maximum amount of HK$287,500.
- There is a limited tax deduction (capped at $97,500) for newly registered electric vehicles without replacing an old one.
2. Infrastructure construction
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Public charging network :
- By the end of 2020, there were approximately 3,000 public charging stations, which increased to 8,000+ by mid-2025.
- Introducing fast charging (above 50kW) and ultra-fast charging (150-250kW) facilities.
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Housing estate charging support :
- The government subsidizes the "EV Charging Easy in Housing Estates" scheme to encourage private housing estates to install charging infrastructure.
3. New energy for public transportation
- Electric Bus Trial Programme: Kowloon Motor Bus and Citybus introduce various electric buses
- Electric taxi trials: BYD E6, E9, etc. introduced for operational testing
4. Regulations and Roadmap
- The Hong Kong Electric Vehicle Popularization Roadmap will be announced in 2021:
- Stop registering new petrol-powered private cars by 2035
- Accelerate the use of new energy vehicles in commercial vehicles and public transportation
- Develop hydrogen energy pilot projects
📊 3. Policy Effectiveness Data (as of mid-2025)
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New energy vehicle ownership
- There are approximately 88,000 registered new energy private cars in Hong Kong, of which more than 85% are pure electric vehicles.
- By 2020, there will be only about 18,000 vehicles
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Market penetration
- 64% of newly registered private cars in the first half of 2025 will be electric vehicles
- In 2018, it was only 6-7%.
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Charging infrastructure
- The number of public charging stations will increase from approximately 3,000 in 2020 to over 8,000 in 2025.
- The proportion of fast charging stations increased from less than 5% to about 20%.
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Progress of new energy in public transportation
- KMB: Over 100 electric buses have been deployed
- Citybus: Plans to convert all buses to zero-emission vehicles by 2027
- Electric taxis: They account for less than 2% of Hong Kong's taxi fleet and are still in the trial stage.
✅ 4. Highlights of the results
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The rapid adoption of electric vehicles, the attractiveness of the "one-for-one" tax incentive, and the diversified brand mix have made Hong Kong's EV penetration rate one of the highest in the world.
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Infrastructure has improved significantly . The number of public charging stations has more than doubled in just five years, making fast charging more common and making long-distance driving more convenient.
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Public transportation begins to transform <br>Bus companies have a clear timetable for switching to new energy vehicles to reduce pollution from diesel vehicles.
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Active market competition <br>In addition to Tesla, brands such as BYD, BMW, Mercedes-Benz, Audi, Xiaopeng, and Volvo are actively entering the market, offering more choices at different prices.
⚠️ 5. Existing Problems and Challenges
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Uneven distribution of charging stations
- There are many charging stations in urban areas, but they are still insufficient in remote areas such as the New Territories West and outlying islands.
- The installation of charging stations in housing estates is a cumbersome process that requires approval from the owners’ corporation.
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Commercial vehicle transformation is slow
- The electrification of large trucks, refrigerated trucks, etc. is limited by cost, range and charging time, and the transformation speed is much lower than that of private cars.
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Second-hand market value is unstable
- EV technology is updated quickly, and older vehicles depreciate quickly, causing large price fluctuations in the used market.
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Hydrogen energy development lags behind
- Although hydrogen fuel cell vehicles are mentioned in the roadmap, infrastructure and trial projects are progressing slowly.
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Policy reliance on subsidies
- The speed of adoption depends largely on tax incentives; if these incentives are reduced, market growth may slow.
🔍 6. Editor’s Observations and Predictions
I believe the government's short-term progress in promoting new energy vehicles is impressive , particularly in the private car market. However, to achieve a truly comprehensive transformation, several key areas must be addressed:
- Balanced development of infrastructure : Charging facilities should cover remote areas to reduce "charging anxiety".
- Commercial vehicle breakthrough : Dedicated charging stations or quick-swap battery technology will be introduced for trucks, buses, etc.
- Accelerate hydrogen energy testing : avoid staying in the conceptual stage for a long time.
- Second-hand market regulations : Establish battery health testing standards to protect the interests of both buyers and sellers.
📈 Prediction :
- Hong Kong's new energy vehicle penetration rate is expected to exceed 85% by 2030
- The proportion of new energy commercial vehicles will accelerate around 2035
- Hydrogen energy may become an important option for heavy-duty vehicles after 2030
💡Editor 's Tips
- If you have an old car to replace, you can pay attention to the "one-for-one" tax incentive period, which may be adjusted.
- Before buying a parking space in a housing estate, ask whether a charging station can be installed, otherwise the driving experience will be compromised.
- If you are in the logistics or commercial vehicle industry, pay attention to the government's future subsidy plans for commercial new energy vehicles. This may be a good time to transform.
