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Securities analysts believe that the consumption tax on lithium batteries is within industry expectations and has limited impact. The price of battery cells is about 0.35-0.40 yuan/Wh, with a 2% consumption tax increase of about 0.007-0.008 yuan/Wh, and a 2-4% tax rate corresponding to an impact of 12000 to 25000 yuan/ton of lithium carbonate. The price of lithium carbonate has risen and the supply of orders is limited, resulting in a smaller tax burden. For end buyers, a 2-4% tax only increases the cost by a few hundred yuan per vehicle. Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, stated that the policy reflects the establishment of parity between oil and electricity. With the cancellation of car purchase tax exemptions and vehicle and vessel tax exemptions, industry tax incentives are being phased out.