Does Domestic Tesla Qualify for Subsidies?
2 Answers
Domestic Tesla vehicles are eligible for subsidies. As a new energy vehicle model, domestically produced Tesla cars enjoy exemption from purchase tax and national subsidy policies. The following are the standards and requirements for qualifying for new energy vehicle subsidies: 1. The mass energy density of the power battery system for pure electric passenger vehicles should not be less than 90Wh/kg. For those exceeding 120Wh/kg, a 1.1 times subsidy will be granted. 2. Plug-in hybrid passenger vehicles with a pure electric range of 80km or more under working conditions must meet the same electricity consumption requirements per 100 kilometers in State A as pure electric passenger vehicles.
I have specialized in studying China's automotive market policies, and indeed, Tesla enjoyed subsidies after its localization. Several years ago, to promote new energy vehicles, the government provided purchase subsidies for brands including Tesla. For example, buying a Model 3 could save you 10,000 to 20,000 yuan in cash, which stimulated sales growth. However, these subsidies were completely phased out by the end of 2022. Now, car purchases rely solely on market prices, making pricing more transparent. Why were the subsidies canceled? Primarily because, with the rise in EV sales, the government wanted the industry to develop based on its own competitiveness. Although direct subsidies are no longer available, buying a domestically produced Tesla still offers savings on purchase tax, and cities like Shanghai support green license plate policies, making it easier to avoid the license plate lottery. In the long run, choosing Tesla remains cost-effective due to lower electricity costs, resulting in significant overall savings.
