Sales of pure-electric vehicles (EVs) in mainland China hit an all-time high last month as consumers rushed to take advantage of expiring tax breaks and subsidies.
Advertisement
The country’s 50 or so EV makers delivered a total of 826,000 BEVs (battery electric vehicles) to domestic customers in September, 28.5 per cent higher than a year earlier, according to data from the China Passenger Car Association (CPCA). The previous record was 762,000 in December 2024.
The sales boom came earlier than usual, as newly launched models whetted consumers’ appetites.
“An EV buying spree was expected to take place in the last two months of this year as consumers took advantage of soon-to-expire tax breaks to buy their favourite cars,” said Zhao Zhen, a sales director at Shanghai dealer Wan Zhuo Auto. “We are likely to see another three months of sizzling sales from October to December.”
Under Beijing’s drive to promote green vehicles and control emissions, mainland EV buyers are currently exempt from a 10 per cent sales tax. But such purchases will incur a 5 per cent tax from January, until the regular 10 per cent tax returns in 2028.
Advertisement
In July, Fitch Ratings predicted in a report that mainland demand for EVs and petrol cars would weaken in the quarter ending September, as carmakers held back discounts and interest-free loans. But the rating firm added that sales would rebound in the final quarter as buyers sought to capitalise on the tax breaks and subsidies.
Until the end of the year, Chinese buyers looking to replace existing cars with EVs are eligible for a trade-in subsidy of 20,000 yuan (US$2,811), while those buying petrol-powered cars are entitled to a 15,000 yuan rebate.