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EVs were once thought to be the unlimited silver lining behind an automotive industry that has all but collapsed into severe recession in China.
But now, it's looking like Beijing isn't so excited to help sustain the EV niche of the market anymore, according to the Wall Street Journal.
Beijing - Ambivalence - Numbers - EV - Sales
And Beijing's ambivalence is starting to show up in the numbers. EV sales fell off a cliff after June of this year, when the government slashed purchase subsidies. From July to October, sales of new energy cars were down 28% from the year prior.
Many buyers prior to this had purchased vehicles in anticipation of the subsidy cut, which makes the sales "hangover" even worse. But the drop, on its own, still suggests that demand could be waning under the surface without government incentive. EVs are still priced above conventional cars when they are not stapled to a government subsidy.
Luxury - EVs - Buyers - Places - Shanghai
Luxury EVs have buyers in places like Shanghai and Beijing, partially because they are exempt from the country's license plate rationing in these areas. But restrictions on convention ICE cars are now starting to relax as the government continues to seek ways to end the country's auto recession. Shenzhen and Guangzhou increased their license-plate quota in June and other cities may do the same.
Bernstein analyst Robin Zhu predicts that ride sharing and taxi companies accounted for about 70% of EV sales in the country and that they could represent...
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