China’s Chery offers tax breaks, subsidies on some combustion vehicles

Apr 1, 2024 2:31 pm | News

BEIJING (Reuters) -Chery announced on Monday that it would offer purchase tax breaks, trade-in subsidies and auto finance discounts on some of its best-selling combustion models, as a cutthroat price war rages in the world’s largest auto market.

Among Chery’s combustion models eligible for the new incentives effective Monday are the Tiggo 8 Pro champion edition, Tiggo 9 and Arrizo 8 high-performance edition, the automaker said in a statement on its WeChat account.

Orders of Tiggo 9, the champion edition of Tiggo 8 Pro and Tiggo 8 Plus would be entitled to limited-time purchase tax giveaways, in addition to trade-in subsides of up to 20,000 yuan ($2,766.71) and auto finance discounts of up to 5,000 yuan.

In June, China unveiled a massive package of tax breaks over four years through 2027 for new energy vehicles capped at 30,000 yuan per vehicle. Combustion vehicles are not subject to such breaks.

Chery also announced cash discounts on Arrizo 8 high-performance edition and off-road SUV Discovery (NASDAQ:) 06 of up to 15,000 yuan.

© Reuters. A view shows a car logo of Chinese automobile manufacturer Chery at a dealership in Vladivostok, Russia, March 22, 2023. REUTERS/Tatiana Meel/File Photo

Rival BYD (SZ:) has slashed prices on a slew of new versions of its existing models since February, aiming to take on combustion-engine vehicles with its lower-priced electric ones.

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