SHANGHAI (Archyde.com) – Electric car makers Tesla, China’s Xpeng Motors and SAIC-GM-Wuling Motors have all but failed to do so despite the government ending subsidies for electric vehicles (EVs) at the end of last year. In January this year, we have no choice but to keep the selling price unchanged or rather strengthen the discount.
In order to maintain the number of units sold while the economy is slowing down due to the outbreak of the new coronavirus infection in China, the company has no choice but to absorb the costs that have been covered by subsidies so far. is.
The subsidy was introduced in 2009 targeting EV and battery manufacturers. It has been paid when Chinese consumers buy EVs. The government has been gradually reducing the system, but in response to the corona crisis, it has been extended from the end of 2020 to the end of last year. The subsidies covered regarding 3% to 6% of the price of China’s top-selling EVs, according to a Archyde.com analysis.
BYD and SAIC Automobile (Shanghai Volkswagen) have raised the prices of some models. Still, it has been forced to absorb most of the subsidy equivalent so far on its own, according to a Archyde.com analysis.
BYD’s December sales doubled from the same month last year due to last-minute demand following the decision to end subsidies at the end of last year.