Price of a small electric car in Shanghai could more than quadruple under plans to scrap free licence plates for cheap EVs

According to three managers with local car dealerships, the municipal government has suspended granting free licence plates for electric cars priced below 100,000 yuan (US$15,544)

The policy change, expected to be announced in the coming weeks, is sure to dent demand for bestsellers such as the Hongguang Mini EV and Ora-branded cars

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A car number plate alone can cost almost 100,000 yuan in Shanghai – more than three times the cost of the Hongguang Mini EV, pictured. Photo: Reuters

Published: 7:56pm, 10 May 2021Updated: 12:39pm, 19 May 2021

Cheap electric cars in Shanghai are about to get a lot more expensive. According to dealers and local media, the city’s government is about to stop issuing free licence plates to their buyers, a move that could more than quadruple the price of getting a small battery-powered car on the road.

The policy change, expected to be announced in the coming weeks, is sure to dent demand for some of the bestselling electric vehicle (EV) models such as the Hongguang Mini EV and Ora-branded cars.

“Shanghai is a pioneer among mainland cities to promote use of EVs, and it is a key battleground for all carmakers,” said Gao Shen, an independent analyst of Shanghai’s manufacturing sectors. “Mini EV manufacturers will suffer a setback from the policy change.”

According to three managers with local car dealerships, the municipal government has suspended granting free licence plates for electric cars priced below 100,000 yuan (US$15,544).

Local state-owned media said the mainland’s commercial capital would publish an official document about adjustments in EV-related incentives in the coming weeks.

Shanghai began giving buyers of pure-electric and plug-in hybrid cars a free licence plate in 2018 to encourage the use of green vehicles.