China's EV makers accelerate growth with government subsidies
Beijing's new incentive scheme offers a subsidy of $1,380 to buyers replacing petrol cars with electric vehicles (EV), Kazinform News Agency reports.
China's EV market is expected to surge forward as government subsidies provide a significant boost to consumer demand and profit margins. The subsidy program will be valid until the end of 2024, and local electric car manufacturers predict sales growth from 45% to 86%.
Phate Zhang, founder of CnEVPost, highlights the positive impact of these subsidies on top players in the industry, predicting an end to the fierce price war and an increase in vehicle margins.
As the EV sector remains a key driver of China's economy, government support coupled with market consolidation are expected to propel the industry into a new phase of growth and stability in 2024.
Interestingly, Tesla remains the most popular electric car.