Hong Kong Ends EV Subsidy, Sparking Surge in Chinese EV Sales; BYD Tops Charts

The Hong Kong Special Administrative Region Government announced that the eight-year "One-for-One Replacement" subsidy scheme for electric private cars officially ended at the end of March and will not be extended. The policy, which offered a first registration tax (FRT) waiver of up to HK$172,500, recently spurred a surge in sales of domestically produced new energy vehicles (NEVs). Brands such as Zeekr, XPeng, and BYD kept their showrooms open late into the night, with multiple models selling out and delivery waitlists extending into May. Data shows that Hong Kong’s NEV penetration rate soared from 1% in 2018 to 70% in 2024, placing it among the highest globally. In 2025, BYD became Hong Kong’s top-selling automotive brand with 9,751 new vehicle registrations, and its Sealion 07 EV emerged as the best-selling model with 5,680 units sold. Other Chinese brands—including Zeekr, XPeng, and MG—also ranked among the top ten. Domestically produced MPVs like the Zeekr 009 and XPeng X9 led their respective segments. Although the phase-out of subsidies may cause short-term sales fluctuations, industry experts note that price competition alone is unsustainable in the Hong Kong market. The key to future growth lies in improving charging infrastructure and after-sales service networks, addressing challenges such as limited home-charging access and a shortage of skilled technicians for battery repairs.