LONDON, June 23 (Reuters Breakingviews) - Extending hefty incentives to buyers for another four years shows Beijing is anxious to support electric vehicles. But prolonging existing subsidies is unlikely to transform the fortunes of loss-making groups like Nio and Xpeng. Weaker rivals may be nearing the end of the road.
China on June 21 unveiled a package of tax breaks for new energy vehicles worth 520 billion yuan ($72.3 billion) over four years, including electric cars, plug-in hybrids and hydrogen fuel-cell vehicles.
New energy vehicles (NEVs) bought in 2024 and 2025 will be exempted from purchase tax amounting to as much as 30,000 yuan ($4,170) per vehicle. The exemption will be halved and capped at 15,000 yuan for purchases made in 2026 and 2027, China’s finance ministry said in a statement. The new package extends the current NEV purchase tax exemption which expires at the end of 2023.
CYVN, a firm backed by the Abu Dhabi government, will invest about $739 million in Nio, the Chinese electric-vehicle maker said on June 20. Nio will issue about 85 million new Class A shares at $8.72 per share to CYVN, and CYVN has also entered into a deal to buy additional Nio shares from an affiliate of Tencent. Upon closing of both deals, CYVN will own 7% of Nio, the carmaker maker said, adding that the holding will entitle the investment firm to nominate one director to Nio's board.
NIO to start new ES8 delivery on Jun 28, cuts price of top trim by $1,400 CnEVPost2023-06-24 13:50
NIO (NYSE: NIO) has announced delivery schedules for the new ES8 and reduced the price of the highest-priced version by RMB 10,000 ($1,400) as delivery of the flagship SUV approaches.
The company said today that show cars of the new ES8 became gradually available in NIO showrooms beginning June 24, and the model will allow consumers to lock in orders, test drive and begin delivery on June 28.
Subscribe to CnEVData to see our full data tables. NIO launched the new ES8 on NIO Day 2022, December 24, 2022, the company's transition to the NT 2.0 platform for its first production vehicle.
With a length, width and height of 5,099 mm, 1,989 mm and 1,750 mm respectively, and a wheelbase of 3,070 mm, the new ES8 targets the market for luxury SUVs, including Land Rover.
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