China’s EV Subsidy Fuels ‘Golden Week’ Sales Surge: A Glimpse into the Booming Market with Looming Post-Subsidy Challenges

China's EV financial aid spikes 'golden week' purchases in anticipation of the end of incentives. Dealers report high sales during the week-long vacation, however, market analysts caution a possible slowdown after the subsidy ends.

Nonetheless, market analysts cautioned that EV sales could decelerate if the incentives are discontinued next year, similar to the situation in January 2023 when the subsidies were gradually eliminated.

"Many customers who come to our dealerships expressed their belief that now is the perfect time to purchase the electric vehicles they've always wanted, thanks to the financial incentives provided by both national and local government to promote owning a car," stated Tian Maowei, a Sales Manager at Shanghai's Yiyou Auto Service.

The week-long public holiday concludes on Monday.

Precise numbers for electric vehicle purchases during the holiday period nationwide have not been released yet, but according to dealers, sales activity and customer interest have significantly surpassed their predictions.

Zhao Zhen, who is a sales manager at Wan Zhuo Auto in Shanghai, revealed that some of their sales representatives have been selling over ten cars daily since the start of October, which is significantly higher than the usual single sale per day.

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China intensifies support for swapping traditional vehicles with electric ones.