Subsidies have receded Xiaopeng has increased prices in the whole series

Photo by Zuo Yu

Less than two weeks after the latest new energy vehicle subsidy policy was introduced, Xiaopeng Automobile announced a price increase for the whole series.

On January 11, Xiaopeng Automobile announced the latest subsidized prices for all models.

Among them, the Xiaopeng flagship sedan P7 series rose by 4300-5900 yuan, and the price after the latest subsidy was 224,200-409,900 yuan; the new P5 series rose by 4800-5400 yuan, and the price after the latest subsidy was 162,700-229,300 yuan; the SUV model G3i rose by 4800-5400 yuan, and the price after the latest subsidy was 154,600-193,200 yuan.

It is reported that Xiaopeng only adjusted for the price this time, and there was no change in design and configuration.

According to public information, the total delivery volume of Xiaopeng Automobile in 2021 is 98,155 vehicles.

Subsidies for new energy vehicles have declined

The general price increase of Xiaopeng Automobile is related to the latest policy of subsidies for new energy vehicles introduced at the end of last year.

On December 31, 2021, the Ministry of Finance and other four ministries and commissions issued the Notice on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles in 2022 (hereinafter referred to as the "Notice"), which clarifies that the subsidy standard for new energy vehicles in 2022 will be reduced by 30% on the basis of 2021.

According to the latest subsidy plan, from January 1, 2022, there will be no subsidy for pure electric passenger cars with a mileage of less than 300 kilometers; a subsidy of 0.91 million yuan for pure electric vehicle models with a cruising range of 300 kilometers (inclusive) to 400 kilometers, a decrease of 3,900 yuan compared with 2021; a subsidy of 12,600 yuan for pure electric vehicle models with a cruising range of 400 kilometers, a decrease of 5,400 yuan compared with 2021; in addition, a subsidy of 4,800 yuan for plug-in hybrid models, a decrease of 2,000 yuan compared with before.

This means that the subsidies enjoyed by new energy vehicle companies will be reduced again, and the cost of this part will be transferred to the price of the car to a certain extent.

In fact, after the introduction of the subsidy plan, a number of car companies have indeed issued signals to raise the price of cars.

Price increases or growth trends

Some car companies choose to increase prices, but some new energy vehicle companies have adopted a temporary price insurance policy.

Xiaopeng Automobile announced a temporary insurance policy at the end of December 2021, and users who paid a deposit before January 10, 2022 can enjoy the same subsidy policy as in 2021, and the difference will be borne by Xiaopeng Automobile.

Weilai Automobile's latest car purchase subsidy plan also shows that users who paid a deposit to purchase ES8 and other models before December 31, 2021 (inclusive) and pre-existed on March 31, 2022, can still enjoy subsidies in accordance with the 2021 national supplement standards.

In addition, the Notice also clearly states that the subsidy policy for the purchase of new energy vehicles in 2022 will be terminated on December 31, 2022, and vehicles licensed after December 31, 2022 will no longer be subsidized.

Some industry insiders analyzed that after the subsidy completely declined next year, new energy vehicles may continue to raise prices, but with the improvement of new energy vehicle product strength and public awareness, the adverse impact on their sales is certainly not as great as in previous years, and the upward trend of the industry will not change.

According to data from the China Automobile Association, sales of new energy vehicles are expected to be 5 million in 2022, an increase of 47% year-on-year.