Non-hukou residents with a Shenzhen residency permit no longer need to pay for basic medical insurance for over 24 consecutive months to qualify for a new energy vehicle (NEV) license plate, according to a notice released by the Shenzhen Municipal Transport Bureau on Tuesday.

The move is to further lower the threshold of NEV purchases.

According to the notice, NEVs include pure electric vehicles and plug-in hybrid vehicles that are on the NEV recommendation list issued by China’s Ministry of Industry and Information Technology.

The new policy took effect Tuesday and will expire Dec. 31 this year. Other requirements and rules set for the city’s car plate license management remain unchanged. Residents with Shenzhen hukou, or permanent residence permit, are eligible to apply for a car license plate without subjecting to quota restrictions after purchasing a new energy vehicle. Fuel-powered cars are subject to quota restrictions and buyers have to either participate in a lottery to win a free license plate or pay for one through bidding.