Xiaomi Corp’s electric vehicle unit, Xiaomi EV, has announced a subsidy program to shield customers from the effects of China’s planned reduction in new energy vehicle (NEV) purchase tax incentives. The move applies to buyers who secure orders by November 30, covering delays in delivery to 2026 caused by Xiaomi.
The subsidy affects the SU7 sedan, SU7 Ultra sedan, and YU7 SUV, offering a final payment cash discount capped at RMB 15,000 (approximately $2,100), ensuring customers incur no additional purchase tax costs.
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China’s NEV purchase tax incentive, extended in June 2023 for four years, gradually reduces benefits. From 2024 to 2025, NEVs remain fully exempt from the purchase tax, capped at RMB 30,000 per vehicle. Beginning in 2026, NEVs will be taxed at half the standard 10% rate, effectively 5%, with a maximum reduction of RMB 15,000 per vehicle.
Xiaomi follows peers in providing similar protections. Nio offered up to RMB 15,000 in subsidies for its third-generation ES8 SUV orders delayed to 2026, while Li Auto pledged to cover potential tax losses for its Li i6 electric SUV customers purchasing before October 31. Neither company has announced subsidies for other models or sub-brands.
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The initiative highlights how automakers are seeking to maintain consumer demand and confidence as China gradually scales back NEV incentives, ensuring buyers are not penalized for production or delivery timing.
