EV Subsidies and Golden Week: Analyzing the Impact on Sales

EV Subsidies Propel Sales During China's Golden Week

Electric vehicle (EV) dealers reported exceptional sales across China during the recent golden week holiday, spurred by ongoing government subsidies aimed at promoting car ownership. Buyers rushed to lock in deals, anticipating a potential future downturn in EV sales if these incentives are phased out. Market observers suggest that the current enthusiasm may not last once the subsidies conclude.

Record Monthly Delivery Trends

September marked record monthly delivery figures for notable brands like BYD, Xpeng, and Li Auto, reflecting a growing shift towards electric cars among consumers. The surge in buying interest was aided by local governments offering additional incentives up to 20,000 yuan.

Future Outlook of the EV Market

• Zhao Zhen, a sales director, noted some salesmen sold over 10 cars daily during the holiday.
• Concerns arise as incentives from local governments could expire post-2024, which might hinder sale volumes.
• EV sales surged, comprising 53.9% of total deliveries in August, a significant increase over previous years.

This sales phenomenon, however, is overshadowed by uncertainty as the potential for reduced sales looms if government support is withdrawn. Maintaining strong sales momentum will be crucial for dealers moving forward, especially as the market adjusts to the absence of these subsidies.