Pure electric and plug-in hybrid vehicle

On December 31, 2022, the Chinese government ended the 13-year-long new energy vehicle (NEV) subsidies. This is mainly because the government believes that China’s NEV market has matured, including charging facilities, demand, manufacturing technology, key components supply, etc. In 2023, NEV accounted for 31.8% of total vehicle sales in the country, which achieved the 20% target set in November 2020.

On April 28, 2024, the Chinese government implemented a vehicle replacement subsidy policy. Under this policy, individuals who scrap their old vehicles below the China III exhaust emission standard or were purchased before April 30, 2018, and buy a new NEV will receive a purchase subsidy of CNY 10,000 (USD 1,380) per vehicle. This subsidy policy will be