Q: An introduction to the general situation of the European market?

A: The market as a whole is very poor this year, and major markets basically show negative growth. Fuel vehicles, Hybrid (gasoline-electric hybrid), and PHEV (plug-in hybrid electric vehicles) have all declined sharply. The number of new energy vehicles registered has not increased significantly.

As far as the market terminal is concerned, there are a large number of orders for new energy vehicles, and the main problem is that the supply cannot keep up. The local production of new energy vehicles in Europe is relatively limited, mainly because the local production capacity of Tesla has not kept up. The overall market is in short supply.

Q: What about policies and trends of electric vehicle subsidies in Europe, as well as the actual implementation situation?

A: EU countries formulate their own subsidy policies, and the differences are relatively large. There are roughly three types of subsidies:

1. Mainly in the Nordic countries, mainly various tax cuts. Taking Norway as an example, pure electric vehicles have zero tariffs, sales tax, consumption tax, and luxury tax are all exempted, including carbon emissions, etc. Compared with fuel vehicles, the tax has been reduced by at least nearly 20%.

At the same time, there are also discounts for right-of-way parking. For example, the expressway from the capital Oslo to the original pure electric vehicles was free of charge, but now it is partially reduced. There are also some free parking spaces for exclusive electric vehicles.

2. Countries in Western Europe, dominated by France and Germany, directly provide cash subsidies, basically in the range of 7,000-8,000 euros. The subsidy policy started in 2019. At the beginning, there were all subsidies, but they were gradually cancelled. Hybrid is canceled first, and EV is still subsidized at 5,000-8,000 euros per car.

3. Mainly in southern European countries, mainly Spain and Italy, the subsidy amount is less, about 5,000 euros. There will be various restrictions and so on.

Southern Europe has limited finances, and subsidies cannot make ends meets.

There are too many early subsidies and the budget is exhausted. Distributors grab the subsidy quota and need to appear on stage within the specified time to reimburse the subsidy.