Chinese race to buy electric cars before subsidy deadline
After the US officially ended tax subsidies for electric vehicles from October 1, China, another major electric vehicle market, also announced that it would start cutting subsidies in this field in the near future. The most notable information is that from January 1, 2026, buyers of new energy vehicles, including electric vehicles and hybrid vehicles, will have their purchase tax rate halved, instead of being completely exempted from the purchase tax as at present. The ceiling tax reduction level will also be reduced from 30,000 yuan to only 15,000 yuan.
Not only is the tax incentive reduced, to enjoy the incentive, many technical conditions are also tightened for vehicles, especially plug-in hybrid vehicles (PHEV), which must have a minimum electric range of 100 kilometers, up from more than 40 kilometers previously.
A longer-term change is that new energy vehicles have been removed from the list of strategic industries in the Chinese government ’s upcoming 2021-2026 five-year plan, a signal that officials want the sector to be able to develop independently in the future without government support.
Although the new policy has not yet officially taken effect, as the deadline approaches, the Chinese electric vehicle market is witnessing strong fluctuations, as consumers want to take advantage of the time to find the right car models at affordable prices, while businesses hope to boost sales while the old subsidy is still in effect.
In Shanghai in recent days, Tesla and Nio car dealerships have seen a significant increase in the number of customers visiting to view the cars. Many people do not hide their desire to be able to choose and deposit for their favorite car model as soon as the tax exemption program for car purchases has not expired.
Mr. Zhang - Shanghai, China said: "At first, I did not plan to buy a car this year, but next year the car purchase tax may increase to 10,000 Yuan, so I decided to go choose a car now."
Mr. Gao Pan - Store Manager, IM Motors said: "Recently, we have continuously had new customers coming to see the cars. On average, each sales consultant can meet nearly 10 groups of customers per day."
In October, Chinese electric and hybrid car makers recorded sales of nearly 13 million units, up more than 30% compared to the same period last year. In addition to existing stimulus policies, the wave of car purchases before the subsidy change is also a driving force for the market.
"On the one hand, the new car replacement subsidy program has continued to have a strong impact, strongly promoting the new energy vehicle market. On the other hand, we have also witnessed a consumption boom by customers who want to buy cars before the new tax reduction takes effect next year," said Chen Shihua, deputy secretary general of the China Association of Automobile Manufacturers (CAAM).
Driven by this wave, new energy vehicles have accounted for more than 50% of vehicle sales in China's domestic market for the first time - further consolidating the country's leading position in the global development of clean energy vehicles.
Source: https://vtv.vn/nguoi-tieu-dung-trung-quoc-do-xo-mua-xe-dien-truoc-khi-tro-cap-thu-hep-100251125103634948.htm
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