China’s EV subsidy boosts ‘golden week’ sales amid rush before incentives’ expiry

Electric vehicle (EV) dealers did brisk sales on the mainland during the “golden week” holiday, with the soon-to-end government subsidies pushing buyers to hasten their decisions.

However, market observers warned of a slowdown in EV sales if the incentives are scrapped next year, just as they did in January 2023 when the subsidies were phased out.

“Most shoppers visiting our showrooms said that they believed it was the best time to buy their long-coveted EVs because of the central and local authorities’ subsidies to encourage car ownership,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai.

The week-long national holiday ends on Monday.

While exact figures for holiday EV sales across the country are not available yet, dealers said transactions and buying interest had largely exceeded their expectations.

Zhao Zhen, a sales director at Shanghai-based dealer Wan Zhuo Auto, said that some salesmen sold more than 10 cars each a day since October 1, compared with one on other days.