One customer said,
In less than a month, the subsidy for new energy vehicles will be canceled. Considering the current rising oil prices and the fact that new energy vehicles use electricity cheaply and are environmentally friendly, I want to hurry up and go to a 4S shop to buy one before the policy benefits end.
Consumers can enjoy subsidies ranging from 4,800 yuan to 12,600 yuan per vehicle for purchasing new energy vehicles (including pure electric vehicles, plug-in hybrid vehicles, and extended range) before December 31. However, if you purchase new energy vehicles in 2023, you will no longer enjoy the "national subsidy".
There are more car owners who hope to catch the last train, and the transaction volume in November is even higher than that of the Golden September and Silver October. According to the law of previous policy declines, car companies and consumers hope to seize the last policy bonus period, and sales in December are expected to increase again. Climb new heights. A new energy vehicle salesman was introduced.
Next year's price increase is inevitable, and many companies have launched limited-time price guarantees
In response to the final window period for the withdrawal of the "national subsidy", many new energy car companies have launched a series of measures such as lock-up subsidies, price increase reminders, and limited-time price guarantees to encourage consumers to buy cars before the year. AITO Wenjie issued an announcement saying that 10,000 additional National Subsidy guarantee quotas will be added. If the registration is not completed before the end of the National Subsidy on December 31 due to Wenjie's reasons, Wenjie will subsidize the price difference according to relevant standards. Xiaopeng Motors issued a statement on the time-limited price guarantee of the National Subsidy in 2022, saying that for orders with deposit payments completed before 24:00 on December 31, the difference in subsidies due to the time of registration will be borne by Xiaopeng Motors.
Geely Automobile Group issued a statement stating that orders that complete deposit payment before December 31 can enjoy the national new energy subsidy in 2022, and the models cover the three major brands of Geometry, Geely and Lynk & Co. Jikr Automobile, a subsidiary of Geely, also announced that if the WE version of the order placed is not completed within 2022 due to Jikr, Jikr will provide users with a balance subsidy in accordance with the 2022 new energy national subsidy policy. Euler Automobile, a subsidiary of Great Wall Motors, also announced the launch of a time-limited price guarantee policy. Users who promise to order and pay a deposit before December 31 (inclusive) will be borne by Euler Automobile for the subsidy difference caused by the extension of the vehicle delivery period. Since the new energy vehicle subsidy node is based on the time when the car owner gets the license plate, the time from paying the deposit to getting the license plate is uncertain, so the price protection policy can dispel customers' worries about not keeping up with the subsidy.
In addition to playing the price protection card, various car companies are also attracting consumers to buy cars through replacement subsidies and other means. Jihu, FAW Toyota, BYD, GAC Hechuang, Roewe, and many other car companies have given subsidy policies for the replacement of their models. An official of the Jihu brand said that the replacement subsidy for its models can reach up to 20,000 yuan, and will also give away car purchase points for different models.
Tesla launched a preferential promotion policy: Consumers who purchase an existing car in December and pick up the car on schedule can enjoy an insurance subsidy of 4,000 yuan.
BYD, on the other hand, fired the "first shot" to increase the price of new energy vehicles, announcing that it would adjust the official guide prices of its Dynasty, Ocean, and Denza new energy models, with an increase ranging from 2,000 to 6,000 yuan. Customers who paid a deposit to sign a contract before January 1, 2023, will not be affected by this price adjustment. Regarding the reasons for this round of price increases, BYD said that one is due to the impact of the decline in subsidies for new energy vehicles next year, and the other is the rise in prices of battery raw materials.
Announcing next year's price increase more than a month in advance is conducive to further accumulating orders in less than two months before the end of the year. Yan Jinghui, a member of the expert committee of the China Automobile Dealers Association, said that while BYD announced the price increase, the official announcement of the price increase in advance is also clear. Release information on the rising cost of car purchases next year, so that consumers who are waiting to buy cars as soon as possible.
Although Changan Deep Blue, Xiaopeng, Weilai, AITO Wenjie, Geely, Jikrypton, and other car companies have not announced plans to increase prices, they have only issued corresponding extension policies. However, with the cancellation of the "national subsidy", subsequent price adjustments should also be inevitable. After the subsidy is canceled, it is basically a foregone conclusion that consumers will spend more on purchasing new energy vehicles. Many consumers plan to purchase a new energy vehicle before the end of the subsidy policy.
Financial subsidies have lasted for more than ten years and have played a huge role in stimulating the development of the industry
China's financial subsidies for new energy vehicles have lasted for more than ten years, which has played a huge role in stimulating the development of the new energy vehicle industry. In 2009, China launched the demonstration and pilot project of energy-saving and new energy vehicles, which were first promoted in the public service field of 13 cities, and expanded to 25 cities in June 2010. The National Supplement gift package is thus opened.
After 2016, the subsidy standards for new energy vehicles began to gradually decline, that is, the subsidy amount decreased year by year, and the standards for vehicles enjoying subsidies increased year by year. According to the original plan, the National Subsidy should be completely withdrawn by the end of 2020. However, in order to stimulate the development of new energy vehicles, in April 2020, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Development and Reform Commission jointly issued the On Improving the Promotion and Application of New Energy Vehicles. The Notice on Financial Subsidy Policy proposes that the implementation period of the financial subsidy policy for the promotion and application of new energy vehicles will be extended to the end of 2022, and vehicles that are licensed after December 31, 2022, will no longer be subsidized.
According to data from the China Association of Automobile Manufacturers, from January to October this year, the production and sales of new energy vehicles in China were 5.485 million and 5.28 million, respectively, an increase of 111.4% and 105.4% year-on-year, and production and sales hit record highs.
Since December 1, car companies such as Weilai, Ideal, Xiaopeng, Nezha, GAC Aian, Leap, and Celes have released their November sales report cards, and the delivery volume of many car companies has hit a new high. GAC Aian sold 28,765 vehicles, a year-on-year increase of 91%. The cumulative sales from January to November reached 241,149 vehicles, a year-on-year increase of 128%, achieving the goal of doubling annual sales ahead of schedule. Nezha Automobile delivered 15,072 vehicles in November, a year-on-year increase of 51%. From January to November this year, Nezha Automobile delivered a total of 144,300 vehicles, a year-on-year increase of 142%.
Ideal Auto set a record for the highest single-month delivery in November, delivering 15,034 vehicles, a month-on-month increase of 49.56% and a year-on-year increase of 11.5%; from January to November this year, a total of 112,000 vehicles were delivered. Weilai hit a new high in monthly delivery volume, delivering 14,178 vehicles, a year-on-year increase of 30.3% and a month-on-month increase of 40.9%. From January to November this year, Weilai delivered a total of 106,700 vehicles, and the annual delivery exceeded 100,000 vehicles for the first time, a year-on-year increase of 31.8%. One of the contributing factors to the record high sales volume is the policy of the upcoming withdrawal of subsidies for new energy vehicles.
New energy vehicles have a strong consumer demand, coupled with the improvement of consumers' awareness of new energy vehicles and the continuous improvement of infrastructure construction in the past two years, more people are willing to understand and buy new energy vehicles, which is also the reason why the overall sales of new energy vehicles continue to grow. one of the reasons for the growth.
The market will enter the survival of the fittest
Regarding whether the withdrawal of the National Subsidy next year will have a chain reaction, Yan Jinghui believes that the sales of new energy vehicles in the first 10 months of this year exceeded 5 million, which proves that the domestic new energy vehicle market is on the right track. Although some models will increase in price next year, this year's heavy volume will not have a serious impact on next year's sales. However, the withdrawal of the National Subsidy may have an impact on sales early next year. Some consumers who bought cars at the end of this year are mostly because their car purchase quota is about to expire or they have plans to buy cars in the first half of next year. Therefore, the demand of these consumers has been released in advance.
Ping An Securities pointed out in the research report that the withdrawal of new energy vehicle subsidies is expected to cause a certain overdraft in the demand for new energy vehicles in the first quarter of 2023, but the new energy vehicle purchase tax reduction policy will be withdrawn in 2024, which is expected to affect the demand for new energy vehicles in the fourth quarter of 2023. Sales of energy vehicles formed a certain support.
Compared with the previous two years, the current domestic new energy vehicle market is more mature. With the withdrawal of subsidies, factors such as gradually complete charging facilities, low vehicle cost of new energy vehicles, products meeting market demand, mature consumer market, and other factors are making the new energy vehicle market develop rapidly. However, this year's sales of new energy vehicles have been on the rise.
According to the data disclosed by the Passenger Passenger Association, from 2017 to 2021, the state has issued a total of 127.5 billion yuan in subsidy funds for new energy vehicles, and 4 million vehicles have been confirmed to receive subsidies; the proportion of new energy vehicles that do not rely on subsidies has increased year by year. The proportion has exceeded 50%.
The withdrawal of subsidies means that new energy vehicles are slowly maturing, no longer relying on the promotion of subsidy policies, and gradually shifting from policy-driven to market-driven. New energy vehicles are about to leave the umbrella of the policy and compete for head-on with traditional fuel vehicles that are mainstream in the market. Domestic consumers have developed a consumption habit for new energy vehicles. After the 13-year-promoted state subsidy ends at the end of this year, new energy vehicle companies will enter the stage of survival of the fittest.
Looking forward to the market outlook, with the cessation of subsidies and increasing investment in research and development, companies with profitability will be more competitive in the next stage of the market. All car companies can only rely on their own product definition capabilities and stable supply chain capabilities to achieve rapid growth in sales of new energy vehicles, dilute costs and expenses by relying on scale effects; enhance the right to speak in the upstream and downstream of the supply chain, reduce costs and increase efficiency...etc. Only in this way can we achieve higher profit flexibility and win more market recognition.