💥 New Purchase Tax Policy Rocks the Market — Can BYD Still Hold Its Throne?

China’s latest adjustment to the NEV (New Energy Vehicle) purchase tax exemption has sparked intense discussion. Under the new rule, only vehicles priced below ¥300,000 and with a driving range over 200 km qualify for tax relief. It sounds minor—but it’s enough to shake the entire industry.

The biggest name feeling the pressure? BYD. Long seen as China’s EV leader, BYD’s success came from affordability and production power. But now, its premium models—like Yangwang and Denza—may lose tax benefits, making consumers hesitate.

Meanwhile, rivals like Tesla and Xiaomi Auto are pushing harder with high-performance, intelligent EVs. To keep its lead, BYD must speed up its high-end product strategy and expand globally.

Sales data shows a slight dip in September, while NEV penetration has reached nearly 50%. The game is no longer about subsidies—it’s about brand, tech, and globalization.

The new policy is a real test. BYD still has strength, but it must evolve faster. The coming months will decide whether it stays on top of China’s EV revolution.