Subsidies, Purchase Tax Exemption Or Both Are Cancelled Next Year, How Many People Will Give Up Buying New Energy Vehicles

As everyone may know, from 2020 to the present, it has been the three most rapid development of new energy vehicles in China, and many manufacturers have sold a large number of new energy vehicles during this period. However, if time continues to move forward, new energy subsidies and purchase tax relief are important driving forces to promote new energy vehicles from "infancy" to "youth". Due to the existence of new energy vehicle subsidies, consumers can buy new cars at a lower price, and the purchase tax reduction allows consumers to "visibly" spend a lot of money when purchasing new energy vehicles. Therefore, we always believe that the leveraging role of new energy vehicle subsidies and purchase tax reductions and exemptions cannot be ignored as new energy vehicles go all the way in the domestic market.

However, as new energy vehicles are more and more recognized by people, the market share and sales volume increase, and the new energy vehicle subsidies and purchase tax reductions that are the promoters will also come to an end. According to relevant notices and a summary of various news, from 2023, that is, starting from next year, the domestic new energy vehicle purchase tax reduction and new energy subsidies are likely to "both fail". After buying a new energy vehicle, the problem that may be faced is that the price of the new car will rise. After buying the car, not only the relevant insurance fees, but also a certain amount of purchase tax must be paid according to the price of the car. These extra costs did not exist when purchasing new energy vehicles before.

Then the current problem is relatively clear. It can be divided into two parts. First, for consumers, with the cancellation of purchase tax reduction and the withdrawal of new energy subsidies, the price of new cars and the cost after purchasing a car may have to be greatly increased. Because we see that just because the new energy subsidy will decline again in 2022, and it has not been completely cancelled, the prices of new energy brand models such as Tesla and Xiaopeng have already increased by different degrees. Then after the complete cancellation, the price is likely to continue to rise, plus the need to pay the purchase tax, so if consumers spend more, are consumers willing to continue to buy new energy vehicles?

Second, for manufacturers and the market, price is always a very important force in leveraging demand and supply, and continued price increases will definitely affect sales. By the same token, with the complete withdrawal of subsidies for new energy vehicles, car prices are likely to continue If it goes up, you also need to pay the purchase tax according to the price of the car, which will cost tens of thousands more inside and out. For consumers, whether they are willing to bear the "pain" of spending more money, these are important factors affecting the new energy vehicle market.

In fact, judging from the development path of the past two or three years, the decline of new energy vehicle subsidies has not had an obvious impact on domestic new energy vehicles, and it can even be said that the impact is minimal. The reason is actually very simple, that is, for pure electric models, there is polarization at the market level. Extremely cheap cars like Wuling Hongguang MINI EV are popular, as well as Tesla, NIO, Xiaopeng and other 200,000. The above models are popular. The audiences of these two types of models are relatively less sensitive to the decline of new energy subsidies, while the overall sales of pure electric models of 100,000 to 200,000 grades are generally average, which may be essentially related to the needs of the audience. Because many consumers in this price range can only buy one car, and many pure electric vehicles are difficult to meet their needs. Therefore, it may be the most sensitive group to new energy subsidies, but many people do not buy pure electric cars at all. However, hybrid vehicles and extended-range electric vehicles have already been deprived of their subsidy qualifications, so the decision to retreat will not affect consumers' purchasing decisions.