China's state subsidies for NEV consumers are set to expire at the end of this year.
(Image credit: AITO)
Local electric vehicle companies are beginning to provide clarity on purchase subsidies, with China's state-level subsidies set to expire at the end of the year.
China's new energy vehicle (NEV) purchase subsidy policy will end on December 31, 2022, and vehicles that receive license plates after that date will not be eligible for subsidies, Huawei-backed AITO reminded potential consumers in an October 16 statement.
For those who complete their deposit payments by November 20 and are unable to complete their license plate acquisition by December 31 for reasons attributable to AITO, the EV maker will bear the additional cost and will allow them to continue to receive this year's subsidy amount, according to the statement.
Currently, China's support policies for NEVs include purchase subsidies and purchase tax exemptions. Both policies are set to expire at the end of this year, but the latter has been extended until the end of next year.
For NEV companies, the lack of capacity causes consumers to wait after ordering.
Therefore, as the end of the year approaches, many consumers will be concerned that after they order a vehicle, they may not be able to get it delivered this year to take advantage of the purchase subsidy policy.
AITO's announcement means that for consumers who order before November 20, they won't have to worry about this uncertainty.
AITO, the premium EV brand launched by Seres and Huawei last December, has become one of the top EV makers in China in terms of monthly deliveries.
In September, AITO delivered 10,142 vehicles, the second consecutive month with more than 10,000 units.
Richard Yu, managing director and CEO of the intelligent vehicle solutions business unit of Huawei, said in a recent interview with an automotive blogger that AITO could have delivered more than 16,000 vehicles in September, but the parts factory in Guizhou was affected by the Covid epidemic, resulting in a shortage of supply.
Now AITO has the capacity to sell 20,000 vehicles per month, he said.