UPDATE 1-China ex-industry minister advises extending 'new energy vehicle' tax break -media

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SHANGHAI, Feb 17 (Reuters) - Former Chinese industry minister Miao Wei advised the government to extend a purchase tax exemption for 'new energy vehicles' (NEVs) as the policy is scheduled to expire at the end of 2023, Chinese news outlet Cailianshe reported on Friday.

Miao, who led the Ministry of Industry and Information Technology which oversees China's auto industry from 2010 to 2020, also said that the expiration of subsidies for NEVs - meaning pure battery electric vehicles (EVs) and plug-in hybrids - will have a limited impact on the domestic market in the first half of 2023, according to Cailianshe.

Miao made the remarks at an expert discussion panel on Friday, Cailianshe reported.

China decided to end a more than decade-long national subsidy for EV purchases at the beginning of this year, forcing automakers including Tesla to deepen discounts to defend their market shares.

The world's largest EV market is also more reliant on various incentives from local governments to encourage purchases.

Sales of NEVs fell 6.3% in January after blistering growth of 90% in 2022, according to China Passenger Car Association (CPCA). (Reporting by Zhang Yan, Brenda Goh and Beijing Newsroom; Editing by Kenneth Maxwell)