Xiaomi Offers Tax Subsidies for 2026 EV Orders Amid China's Incentive Cut

Xiaomi Corp. has launched a limited-time purchase tax subsidy program to ease the impact of China's planned reduction in electric vehicle (EV) tax incentives starting in 2026. The program applies to customers who place orders by November 30, 2025, for Xiaomi's SU7, SU7 Ultra sedans, and YU7 SUVs, and whose vehicle deliveries are delayed to 2026 for reasons attributable to Xiaomi. Under the subsidy, Xiaomi will cover any increased purchase tax costs due to the reduced tax exemption, up to 15,000 yuan ($2,100), via a final payment discount. This move follows similar initiatives by other Chinese EV makers like Nio and Li Auto, aiming to maintain buyer confidence amid changing government incentives. China's NEV purchase tax incentives will decrease from a full exemption in 2024-2025 to a half-rate taxation with capped benefits in 2026-2027, prompting manufacturers to offer such subsidies to offset customers' additional expenses. Xiaomi's strong demand for its EV models, including 240,000 locked-in orders shortly after the YU7 launch, underscores the significance of this subsidy program in supporting sales and customer satisfaction during the transition.