With less than two months remaining before the new energy vehicle purchase tax is expected to be halved, the year-end car-buying rush has already begun. “We had planned to buy a car this year anyway, and we intend to finalize the purchase before the tax incentive ends. Buying this year could save us about 4,000 yuan,” Recently, a consumer planning to purchase a Geely Starwish shared with the Daily Economic News. Reporters learned that popular models in the new energy market currently operate on an order-based production system, with delivery cycles for some models stretching to several weeks or even months. Customers placing orders after late October may face the awkward situation of “locking in orders this year but receiving invoices next year,” potentially missing out on the full tax exemption. “For owners who place orders before the end of November, we can provide a purchase tax ‘backstop’ service,” stated an Ideal Motors sales representative. Reporters learned that Xiaomi, Shenlan, and Chery Automobile have also introduced similar “guarantee” schemes. These programs generally stipulate that if consumers finalize their orders by the end of November but face delivery and invoicing delays into 2026 due to manufacturer production or transportation issues beyond their control, the automaker will fully cover the purchase tax difference through either a final payment reduction or cash subsidy. The maximum subsidy per vehicle can reach 15,000 yuan.
“Currently, the Li Auto i6 has a high volume of orders. Consumers placing orders now are expected to take delivery between January and February next year. Considering this timeline, the manufacturer introduced the purchase tax coverage service. Under next year’s policy, the purchase tax for the Li Auto i6 would require an additional payment of over 10,000 yuan,” the Li Auto sales representative explained. Reporters learned that Li Auto’s purchase tax subsidy program is limited to orders placed before the end of November. Consumers who placed orders in October can enjoy an additional ¥5,000 cash discount compared to those who order in November.
A sales representative from IM Motors stated that considering order volume and production capacity, consumers who finalize their orders before November 11th can secure a spot in the purchase tax subsidy program. “We currently have vehicles in stock, so orders don’t require waiting—hence we haven’t launched a purchase tax subsidy policy. However, we still advise potential buyers to place orders promptly, as many customers have recently inquired about policy changes. We anticipate increased orders in November and December,” a Geely Starwish salesperson told reporters. In fact, multiple automakers have announced purchase tax subsidy policies. For instance, Xiaomi Motors stated that for orders locked before November 30th, if delivery is delayed until 2026 due to Xiaomi’s own reasons, the company will fully cover the resulting purchase tax difference, with subsidies up to ¥15,000 applicable to all SU7, YU7, and SU7 Ultra models. Additionally, companies like Dongfeng Yipai, Shenlan, Chery, and Changan Automobile have introduced similar schemes to cover purchase tax costs for customers who lock in their orders.
Behind these “backstop” policies, the auto market is in its year-end sprint phase, with automakers leveraging the “window period” of new energy vehicle purchase tax adjustments to boost sales. “The current notice we’ve received is that new energy vehicle purchase tax will definitely be levied next year, albeit at a 5% rate. Therefore, we encourage consumers to place orders once they’ve made their decision.“ Sales representatives from BYD, Geely Starwish, and IM Motors previously advised reporters to ”buy early“ before policy tightening. ”Many consumers adopt a wait-and-see approach. For vehicles priced above 200,000 yuan, the purchase tax represents a significant expense. Once you’ve identified your preferred model, placing an order promptly is the more prudent choice,” stated the IM Motors sales representative.
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