Trade group predicts flat new-vehicle market in 2023


The China Auto Dealers Association forecast Wednesday that the new car market will remain flat in 2023 after government subsidies for electrified vehicles and tax incentives for fuel-powered vehicles end at the end of December.

In 2010, Beijing began subsidizing private purchases of fully electric and plug-in hybrid vehicles. In 2022, EVs will be eligible for subsidies ranging from 9,100 yuan ($1,321) to 12,600 yuan, and plug-in hybrids will be eligible for a uniform subsidy of 4,800 yuan. The subsidy system was abolished on December 31.

On June 1, the Chinese government halved the purchase tax to 5% for fuel-powered vehicles with an engine size of 2.0 liters or less and a price of 300,000 yuan ($43,541) or less. That tax cut also he expired on December 31st.

Retail sales of new sedans, crossovers, SUVs and utility vehicles across the industry rose 15%,12 as customers rush to buy new vehicles before subsidies and tax incentives expire, according to CADA. It reached 2.43 million units in the month. .

However, through 2022, new car sales will only grow by 1.8% year-on-year to 20.7 million units, the trade group added.



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