(Yicai) Sept. 19 -- Automakers are expected to launch a record number of new models this month, as they aim to fully take advantage of the new energy vehicle purchase tax exemption policy that expires at the end of the year.

Twenty-eight new models were launched in China in September as of yesterday, five of which debuted on Sept. 17 alone. By the end of the month, the Nio ES8, Li Auto i6, Zeekr 9X, revamped Aito M7, and Volvo XC70, among others, are also set to hit the market.

The previous new car launch record for a month without auto shows was set at 38 in March last year.

China has been exempting NEV buyers from the standard 10 percent tax levied on the selling price of vehicles since 2014 to boost the transition into green transport. The policy will expire at the end of this year. Instead of extending it, China will cut the purchase tax for NEVs in half to 5 percent, with the exemption capped at CNY15,000 (USD2,110) for the next two years.

Carmakers are also launching many new products in September as a final push to achieve their annual sales target. Many of them have sold fewer autos than expected so far this year, which increased the pressure to meet their sales goals.

Except for Xpeng Motors, Leapmotor Technology, and Xiaomi Auto, which are on track to achieve their annual sales target, other Chinese NEV startups are under various degrees of pressure.

For example, SAIC Motor’s IM Motor, Changan Automobile’s Avatr Technology and Deepal Automobile Technology, Huawei Technologies’ Harmony Intelligent Mobility Alliance, Geely Automobile Holdings’ Zeekr, and Nio had all achieved less than 40 percent of their annual sales target as of Aug. 31.

Among large automakers, Geely Auto, BYD, SAIC, FAW Group, and Changan Auto had achieved more than 60 percent of their annual sales targets at the end of August. Meanwhile, their peers are facing significant sales pressure. For example, BAIC Group only completed 36 percent of its annual sales target in the first eight months of the year.

In addition to accelerating the pace of new product launches, many automakers have also introduced various promotional activities to attract consumers from the beginning of this month.

On Sept. 1, Tesla cut the price of the Model 3 Long Range Rear-Wheel Drive version by CNY10,000, less than a month after its launch, and introduced a five-year zero-interest financing plan for both the Model 3 and Model Y.

Afterward, brands like Xiaomi Auto and Xpeng also rolled out similar promotional strategies, including zero down payment, zero interest, fixed-price discounts, and direct manufacturer subsidies.

Editors: Tang Shihua, Futura Costaglione