Tesla's China-made Model 3 vehicles at the car maker's factory in Shanghai. Reuters
Tesla's China-made Model 3 vehicles at the car maker's factory in Shanghai. Reuters
Tesla's China-made Model 3 vehicles at the car maker's factory in Shanghai. Reuters
Tesla's China-made Model 3 vehicles at the car maker's factory in Shanghai. Reuters

Tesla and other EV makers forced to deepen discounts after China pulls plug on subsidy


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China’s decision to end a more than decade-long subsidy for electric vehicle purchases has forced car makers, including Tesla, to deepen discounts to maintain sales as demand eases in the world's largest market.

The government originally planned to phase out the support programme for EV makers and battery suppliers by the end of 2020, but extended it until the end of December in response to the pandemic.

As China grapples with the upheaval of an upsurge in Covid-19 cases and as its economy grows at its slowest pace in decades, Tesla, Xpeng and SAIC-GM-Wuling have opted to hold consumer prices flat in January.

The subsidy accounted for about 3 per cent to 6 per cent of the cost of the best-selling electric vehicles in China last year, a Reuters analysis found.

Other EV makers, including Tesla's larger rival BYD and SAIC-Volkswagen, have raised prices for some models but opted to absorb most of the cost of the subsidy, the Reuters tally showed.

The subsidy, paid to the car maker at the point of purchase, began in 2009 and was scaled back over time. It paid out nearly $15 billion to encourage EV purchases through 2021, according to an estimate by China Merchants Bank International.

As some consumers rushed to take advantage of the subsidy while there was time, BYD doubled its retail sales in China in December from a year earlier, while Tesla's retail sales in China fell by 42 per cent.

JP Morgan said in a research note on Thursday that it expects “a transitional pain period”, with January and February industrywide sales of EVs and plug-ins in China down between 40 per cent and 60 per cent from year-end levels. BYD raised prices on its best-selling EVs.

Tesla, meanwhile, is defending its market share by selling the basic, rear-wheel drive Model Y for 288,900 yuan ($42,053.63) in China, unchanged from December.

It is also offering another 10,000 yuan in cash incentives and insurance rebates for buyers in January, which means it has effectively cut prices in China by up to 12 per cent since early September, when that model was sold for 316,900 yuan.

Buyers of BYD's best-selling electric cars have to pay 2,000 yuan to 6,000 yuan more in January, depending on the model they choose, compared to those who placed the orders in 2022, posted prices show. That represents a price rise of between 2 per cent and 3 per cent.

China's Association of Automobile Manufacturers said in December it expected sales of EVs and plug-in hybrids to grow by 35 per cent in 2023, accounting for a third of total vehicle sales.

But William Li, chief executive of car maker Nio, said it could take until May for China's EV market to begin to recover.

“It will take time for both the supply chain and consumer demand to recover,” Mr Li said last month.

A Nio dealership in Shanghai, China. William Li, chief executive of Nio, said it could take until May for China's EV market to begin to recover. Bloomberg
A Nio dealership in Shanghai, China. William Li, chief executive of Nio, said it could take until May for China's EV market to begin to recover. Bloomberg
The specs: 2018 Audi Q5/SQ5

Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder /  3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad. 

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Temple numbers

Expected completion: 2022

Height: 24 meters

Ground floor banquet hall: 370 square metres to accommodate about 750 people

Ground floor multipurpose hall: 92 square metres for up to 200 people

First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time

First floor terrace areas: 2,30 square metres  

Temple will be spread over 6,900 square metres

Structure includes two basements, ground and first floor 

Long read

Mageed Yahia, director of WFP in UAE: Coronavirus knows no borders, and neither should the response

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

Results:

2.15pm: Handicap (PA) Dh60,000 1,200m.

Winner: AZ Dhabyan, Adam McLean (jockey), Saleha Al Ghurair (trainer).

2.45pm: Maiden (PA) Dh60,000 1,200m.

Winner: Ashton Tourettes, Sam Hitchcott, Ibrahim Aseel.

3.15pm: Conditions (PA) Dh60,000 2,000m.

Winner: Hareer Al Reef, Gerald Avranche, Abdallah Al Hammadi.

3.45pm: Maiden (PA) Dh60,000 1,700m.

Winner: Kenz Al Reef, Gerald Avranche, Abdallah Al Hammadi.

4.15pm: Sheikh Ahmed bin Rashid Al Maktoum Cup (TB) Dh 200,000 1,700m.

Winner: Mystique Moon, Sam Hitchcott, Doug Watson.

4.45pm: The Crown Prince Of Sharjah Cup Prestige (PA) Dh200,000 1,200m.

Winner: ES Ajeeb, Sam Hitchcott, Ibrahim Aseel.

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The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Price: From Dh801,800
Company%C2%A0profile
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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
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ELIO

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Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

Updated: January 06, 2023, 5:00 AM`