(Bloomberg) -- Shares of Chinese automakers jumped after state television reported Wednesday evening that the government may extend tax exemptions on electric-car purchases in a bid to boost the auto sector.

Li Auto Inc. soared as much as 8.7% in Hong Kong, Xpeng Inc. added 6.2% and BYD Co. rose 2.5%. Singapore-traded shares of Nio Inc. gained 4%. Suppliers including Changzhou Xingyu Automotive Lighting Systems Co. and Tianrun Industrial Technology Co. also gained, while battery giant Contemporary Amperex Technology Co. Ltd. rose up to 3.2% in Shenzhen after a share sale.

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The central government is considering extending exemptions by about 200 billion yuan ($30 billion), state television reported, citing a State Council meeting chaired by Premier Li Keqiang.

Policies such as waiving taxes would aim to bolster demand for new energy vehicles and stimulate the used-car market, according to the CCTV report.

Government subsidies introduced in 2009 to help the EV industry are already being withdrawn and are due to be phased out completely next year. An exemption on the 10% EV-purchase tax is set to expire at the end of 2022.

Read more: China Automakers Join Government With Incentives to Boost Sales

Car sales in China slowed as the country battled Covid-19 with strict lockdowns that sapped consumer spending. Passenger vehicle sales slid 17% in May from a year earlier, and not a single new car was sold in Shanghai in April as the virus gripped the city.

China has said it would halve the purchase tax on low-emission passenger vehicles with no more than nine seats that were sold for 300,000 yuan or less from June to December.

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