China NEV Market

BYD ranks No. 1, Tesla No. 2, and Nio No. 9 in terms of NEV market share in China in 2023.

Simply put, consumers who buy NEVs with an invoice amount exceeding RMB 339,000 are required to pay purchase tax. Models that support battery swap get preferential treatment.

BYD sold 263,066 retail units in China in November, and Tesla 65,504.

In October, China's NEV penetration at retail stood at 37.8 percent, up 7.6 percentage points from 30.2 percent a year earlier.

In the January-October period, BYD was No. 1 with a 36 percent share, Tesla was No. 2 with 7.8 percent and Nio was No. 9 with 2.1 percent.

In the January-September period, BYD took first place with a 36.3 percent share, Tesla was second with 8.4 percent and Nio was ninth with 2.1 percent.

The document lists 10 measures, three of which are directly related to support for the NEV sector, and specifically mentions support for the battery swap model.

For a NEV with a pre-tax price of RMB 300,000, consumers will continue to be exempt from purchase tax from 2024-2025, while they will be subject to RMB 15,000 in purchase tax from 2026-2027.

From now until 2027, pure electric vehicles will continue to enjoy purchase tax incentives, which will give Nio vehicles a significant advantage over fuel-powered luxury vehicles in terms of purchase costs, Nio said.

China's cumulative tax exemptions for NEVs exceed RMB 200 billion by the end of 2022.