At the end of the year, many new energy vehicle companies and potential car buyers are closely monitoring the dynamics of national subsidies. According to the current national subsidy policy for promoting new energy vehicles, subsidies for 2022 will decrease by 30%. Many consumers, worried that automakers will raise prices next year, are considering purchasing before New Year's Day.
In fact, the reduction in subsidies aims to decrease the new energy vehicle consumer market’s reliance on policies. With the 'subsidy cut' starting next year, what will be the actual impact on new energy vehicle consumption? Facing this huge potential new market, what opportunities will domestic brands encounter?
Current situation: The overall market price remains stable amidst responses to 'subsidy cuts'
According to the 'Notice on Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles' jointly issued by the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission in April 2020, the implementation period of financial subsidies for the promotion and application of new energy vehicles has been extended until the end of 2022. In principle, subsidy standards for 2020-2022 will decrease by 10%, 20%, and 30% based on the previous year.
In fact, although the official 2022 financial subsidy policy for the promotion and application of new energy vehicles has not yet been released, automakers have already prepared well in advance.
Some automakers in the market have already chosen to focus their strategies around the 'national subsidy reduction,' guiding consumers during sales to seize the 'last month' window. Many consumers may see similar promotional advertisements from brand dealers in showrooms and on social media feeds.