Amid price wars, China’s EV makers pile on cash incentives

Chinese EV makers Nio and Li Auto are extending purchase incentives to 2025 amid a price war in the country's EV market. These incentives, including cash subsidies and interest-free financing, aim to stimulate sales ahead of government subsidy reductions. China's government has signaled a potential extension of trade-in incentives in 2025, but details are pending. Local authorities, like Nanjing, are also providing subsidies for EV purchases. The Chinese government is issuing 3 trillion yuan in special treasury bonds to support the economy through subsidy programs. EV leader BYD has offered discounts on its vehicles, while Tesla has extended a discount on loans for its Model Y. In 2023, NEV sales surpassed 10 million units due to government subsidies, but auto-related retail sales declined overall.