Yemen embraces sustainable future with BYD electric vehicle launch

Yemen is taking a significant step toward a sustainable future with the launch of Chinese electric vehicle (EV) maker BYD's first showroom and charging infrastructure in the capital city of Aden in early May.

As fuel shortages weigh heavily on Yemeni households, EVs are transitioning from a luxury to a necessity. BYD's official entry into the Yemeni market provides a practical alternative for a population already familiar with solar energy.

"We are proud to represent BYD, the world's leading EV manufacturer, here at Al-Ittihad International. We are providing tangible solutions for the transport sector through clean, alternative energy, meeting our customers' needs," said Amin Qasim Al-Houthari, chairman of Al-Ittihad International.

This expansion aligns with China's green Belt and Road Initiative, emphasizing sustainable development through Chinese innovation. For many in Aden, the shift to electric and hybrid models is a logical step. Having relied on decentralized solar power for years, the transition to EVs represents the final piece of the energy independence puzzle.

"The arrival of BYD is a major milestone for us. It offers a vital alternative for citizens burdened by the fuel crisis and skyrocketing petrol prices. These electric vehicles significantly ease the daily struggle," said Imad Al-Matari, a local resident.

While the road to a full green transition remains long, the arrival of world-leading EV technology marks a significant milestone, signaling a new chapter of resilience powered by China-Yemen cooperation.

Yemen embraces sustainable future with BYD electric vehicle launch

Chinese authorities announced Friday that starting from January 1, 2027, the country will cancel the policies of halving the vehicle and vessel tax for energy-saving vehicles and exempting certain new energy vehicles (NEVs), including pure electric commercial vehicles, plug-in hybrid electric vehicles, and fuel cell commercial vehicles from the tax.

With the adjustment, taxpayers who have acquired or will acquire the above-mentioned vehicles will be required to pay the annual tax starting next year, according to the Ministry of Finance.

However, pure electric passenger vehicles and fuel cell passenger vehicles remain unaffected by this policy adjustment and will continue to be exempt from the tax, as the two categories do not fall within the taxable scope stipulated by the vehicle and vessel tax law.

The vehicle and vessel tax is a property tax levied annually on the owners or managers of vehicles and vessels. Provincial-level regions can set region-specific applicable tax amounts within a certain range of tax rates.

Since 2012, China has implemented preferential vehicle and vessel tax policies to support the growth of the NEV industry and promote energy conservation and emission reduction. In recent years, the sector has witnessed rapid growth, along with rising challenges brought about by the preferential treatment to tax equity and the regulatory role of tax.

Analysts believe that this policy adjustment will help promote tax equity and guide the sound development of the NEV industry.

China to cancel vehicle and vessel tax preferential policy for energy-saving vehicles, NEVs