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Jan 19, 03:45 PM

Zhijie Offers Limited-Time Purchase Tax Subsidy to Offset Upcoming NEV Policy Shift

#China EV Trade-In Subsidy Policy

[Market Strategy] Zhijie Auto is offering a purchase tax subsidy of up to RMB 12,000, applicable to all models in its lineup.

Core Development: Subsidy Directly Deducted from Final Payment, Extending Tax Exemption Benefits

All configurations of the Zhijie R7 and new Zhijie S7 are eligible for this benefit. The promotion runs from January 16 to February 2. The subsidy cannot be redeemed for cash but effectively offsets the anticipated cost increase resulting from the policy shift starting in 2026, when the new energy vehicle (NEV) purchase tax exemption will be reduced to a 50% discount (capped at RMB 15,000).

Key Metrics: Deliveries Exceed 10,000 Units for Three Consecutive Months, Amplified by Enhanced Incentives

Zhijie has achieved monthly deliveries exceeding 10,000 units for three consecutive months. Combined with this latest policy, the R7 now offers total purchase incentives of up to RMB 49,000, while the new S7 offers up to RMB 59,000.

Strategic Underpinnings: Covert Price Wars May Emerge as a New Industry Trend

Amid the phase-out of purchase tax exemptions, automakers are self-funding subsidies to absorb the financial impact—stabilizing end-user pricing without officially lowering prices and thereby protecting brand equity. This approach could trigger a new wave of implicit price competition across the industry.