Facing the possible axing of the city’s electric vehicle tax concession, car dealers are making a final push to capture last-minute buyers before the Budget is delivered on Wednesday.
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The rush comes as the March 31 expiry of the “One-for-One Replacement” scheme approaches. The program, which offers first registration tax concessions for eligible electric private cars, has fueled a spike in registrations, with buyers scrambling to secure the benefit before any policy changes.
According to reports, January recorded 3,241 electric private car registrations, representing a 19.6 percent increase compared with last year’s monthly average.
Red carpet for last-minute buyers
Multiple EV brands took to social media on Tuesday to announce extended showroom hours and special arrangements ahead of the Budget.
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BYD, which has branded itself the “2025 sales champion of EVs,” said its showrooms in Tsuen Wan, Kowloon Bay, Sha Tin, Yuen Long and its Brand Experience Centre would remain open until midnight on Wednesday. The company urged customers to “catch the last train” of the current “One-for-One Replacement” scheme.
A dealer of GAC AION said its Kwun Tong store and Tsuen Wan showroom would extend operating hours until 10pm on both Tuesday and Wednesday, calling it the “final last call” for the concession.
Toyota announced it would extend operations until 9pm from February 23 to 25 across its showrooms, offering on-site trade-in valuations and complimentary refreshments for drivers hoping to take advantage of what could be the last opportunity for tax concessions.
Smart has set up a special service station in the New Territories for Wednesday, offering “one-stop support” for residents to inquire about potential policy changes, vehicle options and related applications.
Leapmotor will run a one-day temporary store at its Kowloon Bay showroom on Wednesday, promising to help customers secure the most suitable purchase under any new policy framework.
Meanwhile, Dongfeng is allowing drivers to reserve a vehicle with a HK$100 deposit before the Budget announcement, enabling them to lock in the current tax benefit if applicable.
Midnight test drives
Eric Wong of MG Motor HK told Sing Tao Daily that the company is prepared for a surge in last-minute demand if the scheme is scrapped.
“If the scheme is scrapped tomorrow, we expect a surge of last-minute buyers. We’re ready to keep our showrooms open overnight and even provide late-night test drive services,” Wong said.
He added that dealers are managing inventory more cautiously this year, having learned from overstocking issues experienced last year.
Wong noted that while the financial value of the tax concession may not appear significant, its psychological impact is considerable.
“When an incentive that customers have become accustomed to suddenly disappears, it severely dampens their desire to buy,” he said.
Despite the current wave of inquiries, Wong predicted a “six-month winter” for the industry should the program be discontinued.
Petrol versus electric
Addressing why some customers still opt for gasoline-powered vehicles, Wong said the main remaining obstacle is inadequate charging facilities at home or at workplaces.
“Today’s electric vehicles are incredibly competitive in performance, price and driving experience,” he said.
As for concerns about aggressive acceleration or a “bumpy” ride, Wong attributed such perceptions to certain models from specific brands, noting that many European, Japanese and Chinese EVs now deliver driving experiences comparable to traditional cars.
