Background of China electric car subsidy

This year will be the last window to enjoy national subsidies for the purchase of electric cars. According to the newly released subsidy policy for the promotion and application of electric cars, the subsidy standard for electric cars in 2022 will be sloped by 30% from 2021. Vehicles licensed after December 31, 2022 will no longer be subsidized, and there will be no more china electric car subsidies for the purchase of electric cars.

Countdown to the withdrawal of subsidies-2022’s China eletric car subsidy

According to the policy, there is no subsidy for pure electric cars with a range below 300 kilometers; the subsidy for electric cars with a range of 300-400 kilometers (including 300 kilometers) drops to 9,100 yuan, a subsidy reduction of 3,900 yuan; the subsidy for  electric  cars with a range above 400 kilometers (including 400 kilometers) drops to 12,600 yuan, a subsidy reduction of 5,400 yuan. Plug-in hybrid models subsidies fell to 4,800 yuan, a subsidy reduction of 2,040 yuan.

　　City bus, road passenger transport, rental (including network vehicles), sanitation, urban logistics and distribution, postal express, civil aviation and airports, as well as the party and government organs in the field of public service to meet the requirements of the vehicle, the subsidy standard in 2021 on the basis of a 20% slope back.

What do we think of “China electric car subsidy”Buy earlier ,earn earlier.

In fact,China’s government decide to cancel the electric car subsidy,they want their products to competite in the market with functions not only prices.

These years,many people import chinese electric cars to their country.such as VW and BYD. As well as some high-end brands such as Voyah, Zeekr and Arcfox. All have achieved a large market in foreign countries. The dealers also earned a good profit.

So why choose to cancle the electric car subsidies at a stage when development is gaining momentum?

For example, the international brand Volkswagen, the same product, produced in China is very advantageous in terms of quality and price. The number of chinese electric vehicles sold in China is already large and does not need to rely on subsidies to increase the size of the market.

If you are a dealer nor buy yourself,what do you have to face?

If you procure a large volume of electric cars in 2021, you should already be making quite a bit of profit.Buy earlier ,earn earlier.So when is the best time to purchase an electric car? Definitely now.

How do we cope with such a situation in the face of increasing procurement costs?

First,Improving knowledge of electric cars. Only by improving yourself can you explain the products more comprehensively to customers or other dealers.The future market is no longer pure price competition, but a comprehensive competition of knowledge as well as service.

Second,It is important to have the confidence to build your own marketing brand and positioning. Brand > price, only after the establishment of their own brand and marketing image, in order to better sell the product.

Third,Always believe that the right product has the right customer. We have a dealership that only imports luxury electric cars. The stores that sell them are also very upscale. But since the luxury electric cars are more profitable, instead they are doing very well. Because of the luxury products, there are less competitors in the market.Therefore, it is far more important to position yourself for development than to imitate.

Buy earlier ,earn earlier.It’s not a joke.