Beijing's Economic and Information Commission recently announced the third batch of new energy vehicle subsidies for 2023, covering a total of 15,728 vehicles and allocating 815 million yuan in funding. Combined with the previous two batches, the city’s total financial support for new energy vehicles this year has surpassed 1.6 billion yuan. The government is also planning to reduce subsidies for new energy cars next year, which is expected to accelerate consumer purchasing decisions, leading to increased traffic at 4S dealerships.
According to the Beijing Daily News on December 7th, as of October 24, 2017, there were 80,785 delayed applications for new energy minibus quotas in Beijing. Based on historical data, the city plans to issue 60,000 new energy vehicle indicators in 2018, including 51,000 private ones. This suggests that next year’s targets are already filled, leaving those who haven’t applied to wait until 2019.
From January to October 2017, Beijing handled 48,252 new energy vehicles exempt from purchase tax, a decrease of 708 units compared to the same period last year. However, the total tax exemption amount reached 1.0067 billion yuan, up by 16.67 million yuan from the previous year—a 20.5% increase. On average, each new energy car received a tax exemption of around 20,900 yuan, indicating a rise in the average price of new energy vehicles purchased in Beijing.
Xiao Shao, who had been waiting for four years, finally decided to act. He found that electric vehicles under 100,000 yuan only offer about 200 km of range, which he felt was insufficient. Longer-range models come at a higher cost, so he decided to take action quickly. He was drawn to the Beijing Auto New Energy EU400 model, but the sales team said it was already scheduled for delivery, and he would have to wait until next month to collect it.
The rising demand for new energy vehicle quotas has also led to the emergence of gray market practices—such as "renting" or "extending" the quota. At Xinfa Auto Market, many new energy dealers prominently display the word "receipt," meaning they are offering access to the lottery-based quota. Some owners rent out their quotas through 4S stores, allowing those without one to purchase and use the vehicle. Another practice involves transferring a new energy car to someone with a quota but no intention to buy, then reselling it to a third party, effectively transferring the quota.
These activities carry significant risks. For example, if an accident occurs while the car is registered under someone else’s name, the owner may still be held legally responsible. Experts recommend that individuals should complete their purchases within the validity period of their quota to avoid complications.
At the entrance of the Zhidou dealership in the New Deal Auto Market, more than a dozen colorful Zhidou electric cars are neatly parked. Mr. Liu, who recently obtained a new energy quota in October, is considering buying a K-2 bean model. With the subsidy and in-store discount, the final price is just 46,000 yuan. “If we already have a gasoline car, it’s just a replacement. Buying a 450,000-yuan electric car is more practical. It’s sufficient for short trips and offers flexibility,†he said.
Micro-electric cars were not popular when first introduced in Beijing due to limited range and competition with old-age scooters. However, as new energy vehicle quotas become more sought after, the popularity of these small electric cars has risen. Models like Zhidou, Beiqi EC Series, Zotye E200, Chery eQ, and JAC iEV, once priced around 50,000 yuan, are now considered "symbolic artifacts" due to their affordability and high demand.
Data from the National Passenger Vehicle Market Information Association shows a clear trend: in October 2017, the top three new energy vehicle sellers were Beiqi EC Series, Zhidou D2, and JAC iEV. Cui Dongshu, secretary-general of the National Association of Sports Federations, noted that A00-grade pure electric vehicles accounted for 65% of all new energy passenger vehicles.
Recently, news that new energy subsidies will be reduced by 20% in 2018 sparked online debates. Meanwhile, the policy of exempting new energy vehicles from purchase tax will end at the end of the year. Fearing higher costs next year, many owners are accelerating their purchases. Visiting several 4S stores in the city revealed that most brands are currently offering discounts and rushing to sell cars.
A salesperson at a Beiqi New Energy 4S store outside the East Fifth Ring said, “If subsidies are reduced, and the purchase tax exemption is removed, the price could go up by 20,000 yuan.†Similarly, a BYD New Energy sales representative mentioned that traffic at the dealership has significantly increased this month, with an average of 10 to 15 cars sold daily. “The quotas are about to expire, so people are rushing to buy.â€
Zhangtai dealers advised customers to make a decision before December 10, as the adjustment of national and local subsidy policies may create a policy gap in the first two months of next year, during which dealers might not be able to sell cars. According to the draft of the subsidy adjustment, not all vehicles will see a reduction in subsidies next year. Vehicles with longer ranges and higher battery energy density may even receive increased support.
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