Some EV buyers in Beijing and Shanghai said they primarily bought plug-in vehicles to easily get a license plate.
Half a dozen of China’s biggest cities tightly control license plates for traditional gasoline cars, but freely award plates that can only be used by plug-in vehicles. For those set on buying a plug-in, the price is really the key.
China’s cocktail of pro-electric policies is a challenge for global automakers, as foreign manufacturers can access subsidies only via joint ventures with local partners, producing cars under new made-for-China brand names such as Denza.
But those brands lack the cachet of established foreign marques and cost more than most local brands even after subsidies.
That’s in part because Chinese automakers are more aggressive in lowering their costs regardless of quality, said an executive at a multinational auto parts firm.
The version of the Leaf that Nissan’s joint venture with Dongfeng Automobile offers in China, under the Venucia brand, isn’t selling very well, confirmed Nissan’s global chief Carlos Ghosn
He added that Chinese EV buyers don’t want to spend much more than US$8,000, after incentives, and the Nissan vehicle is too expensive.
The playing field for foreign brands in China should, though, gradually even out as subsidies are phased out by 2020.