China NEV Market

BYD has six models on the list, and Leapmotor, WM Motor, Neta and Ora also have models eligible to participate in the campaign.

"Whatever you may think of China, this is simply a fact," Musk said.

Shenzhen will increase the availability of quotas for regular cars and provide subsidies to consumers who buy NEVs.

By comparison, in other major markets, the median price of EVs is 45 percent to 50 percent higher than conventional products.

The recent decline in income for some residents following the Covid outbreak has led to an impact on consumption, and the contraction in demand has trickled down to the auto market, the CPCA said.

China is in talks with automakers to extend EV subsidies that were set to expire in 2022, aiming to maintain growth in a key market amid a broader economic slowdown, Reuters said.

China will encourage consumption by rural residents of cars priced at less than 150,000 yuan ($22,230), including ICE vehicles and NEVs, according to local media.

This is the best analysis we have seen of the Chinese automotive supply chain and what impact Covid has had.

A new round of policies to boost auto consumption in rural areas will be released soon, possibly as soon as this month, Cailian reported.

Compared to the NEV market, China's overall auto market performed worse in April, with sales down 47.1 percent from March.