Local Governments Intensively Introduce Stimulus Policies to Boost NEV Consumption

SHANGHAI, Jan 31 (SMM) - The new energy vehicle (NEV) purchase tax subsidy policy that has officially expired on December 31, 2022. Entering 2023, many domestic NEV companies have announced that they will hike prices against the background of high raw material prices. However, as Tesla initiated the "first price cut" in 2023, many car companies have launched various short-term preferential measures during the Chinese New Year holiday, and the actual price was even lower than that when the national subsidy was still available! However, from an official point of view, the price hike of new energy vehicles in 2023 is still a general trend.

However, even if the national subsidy is withdrawn, NEV is still the top priority of the country's promotion of consumption. At the same time, for provinces and cities, the importance of new energy vehicles cannot be underestimated. Therefore, since 2023, nearly 20 provinces and cities have introduced support policies on new energy vehicles.

For example, Shanghai has extended the new energy vehicle replacement subsidies. Before June 30, 2023, individual consumers who scrap or transfer out their own passenger cars registered in Shanghai and purchase pure electric vehicles will be given subsidies for 10,000 yuan for each vehicle.

Wuxi City has issued new energy vehicle consumption coupons, with a total amount of 12 million yuan.

The People's Government of Henan Province just released the Policies and Measures to Vigorously Boost Market Confidence and Promote Economic Stability and Improvement. According to the notice, the subsidy policy will be extended until the end of March 2023, and consumers will be subsidised at 5% of the purchase price of newly purchased cars in the province, with a maximum of 10,000 yuan per vehicle.