Since 2016, China began to give out special “green-colored” license plates to new energy vehicle (NEV) car owners. This new plate distinguishes the NEVs from the regular “blue-colored” license plates which are commonly used on regular fuel passenger cars. Most importantly, NEV’s green plates are exempt from some cities’ license plate auction system, which was set to limit new car ownership in order to resolve congestion and pollution problems. For example, in 2020, the average sale price for a new license plate registration quota in Shanghai is about 90,000 Chinese yuan ($14,068). This means buying a NEV in Shanghai could cost about $15k less than buying a regular fuel car during the process of registration. Buying a NEV becomes a very good option for potential car buyers in Shanghai. The Chinese government is doing so to encourage people to buy more NEVs because it wants to achieve the goal that by 2035, 20% of the total vehicles on the road are NEVs. The policy aims to reduce carbon emissions by limiting the number of fuel-based passenger vehicles. In July 2020, Shanghai's government unveiled plans to add 100,000-200,000 public and private NEV charging points over the next three years. In May, It also offered a subsidy of 5,000 yuan/unit ($704/unit) to NEV buyers.
Tesla, which first entered China in 2019, has a large advantage in the NEV market. Since early 2020, Tesla's newly built super factory in Shanghai has been delivering vehicles to the Chinese market. The maximum capacity of the factory could reach 550,000 units per year. Shanghai’s Tesla sales made up 31% of the total amount of China-made cars Tesla sold in the country. In September 2021, Tesla sold 56,000 EVs in China. That is a record sale number per month, and it seems to be growing in the future.
Buyers at a Local Tesla Dealership in Shanghai, China
Source:
1.
China's Shanghai continues to offer free EV
licenses. Web. February 2021. https://www.argusmedia.com/en/news/2185607-chinas-shanghai-continues-to-offer-free-ev-licences
2.
Tesla sales in China expected to see Q4 surge
with Shanghai’s updated license plate rules. Web. December 2020. https://www.teslarati.com/tesla-model-3-boosts-q4-sales-china-shanghai-rules/
3.
New energy vehicles in China. Web. October 2021.
https://en.wikipedia.org/wiki/New_energy_vehicles_in_China