Chery has introduced a subsidy program to offset the impact of China’s expiring purchase tax incentives for new energy vehicles (NEVs), while industry officials urge the government to slow the pace of the policy phase-out to support market stability.
Under the program, Chinese customers who purchase Chery vehicles on or before November 30 will receive subsidies of up to RMB 15,000 ($2,110) if production or transport delays prevent them from qualifying for this year’s purchase tax benefits. The subsidy will be applied directly as a deduction from the final vehicle payment, the automaker said.
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The program covers all models under Chery’s sub-brands — including Zhongheng, Exeed, Jetour, and iCar — that meet China’s 2026 purchase tax reduction criteria. The initiative mirrors similar measures recently announced by Xiaomi EV, which also pledged subsidies for customers affected by delayed deliveries extending into next year.
A senior official from the China Association of Automobile Manufacturers (CAAM) has called for a slower phase-out of the country’s NEV purchase tax incentives. Chen Shihua, CAAM’s deputy secretary-general, suggested setting the tax rate at 3% in 2026 and 7% in 2027, instead of the currently planned 5% for both years. He made the proposal during the 2025 automotive industry statistical annual report conference in Changsha, Hunan, according to a CAAM post on WeChat.
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Chery, one of China’s largest automakers, sold 2.6 million vehicles in 2024, marking a 38% increase year-on-year. Of those, 583,569 were NEVs — a 232.7% surge from the previous year — while exports climbed 21.4% to 1.14 million units. The company’s revenue reached RMB 480 billion, up more than 50% year-on-year.
Chery debuted on the Hong Kong Stock Exchange on September 25, marking the largest automotive IPO in the city this year. The company’s new subsidy program underscores growing efforts among automakers to sustain consumer confidence and sales momentum amid policy adjustments and a more competitive domestic EV market.
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