Bastille's Report: "One-for-One Replacement" Scheme Winds Down - BYD Helps Owners Catch the Last Train

Following the announcement in the Budget that the "One-for-One Replacement" Scheme for electric vehicles will officially conclude next Tuesday (March 31), BYD (01211) launched a dedicated hotline, aiming to help citizens interested in purchasing an electric vehicle "catch the last train" before the deadline. Mr. Raymond Cheung, the Chief Operating Officer of BYD HK, stated that since the hotline's launch, the market response has been "extremely enthusiastic," adding that "our volume of inquiries and orders continues to hover at historic highs."

In an interview with Bastille Post, Mr. Cheung stated that since February 27, BYD HK has launched a "Special Hotline for Green Mobility Vehicle Purchases", offering a "one-on-one, end-to-end, and expedited" purchasing service, designed to ensure that every citizen intending to switch to an electric vehicle can successfully "catch the last train" before the scheme ends.

Mr. Raymond Cheung, the Chief Operating Officer of BYD HK, Photo source: BYD HK

The "One-for-One Replacement" Scheme for electric vehicles was officially launched in 2018 to encourage car owners to scrap their old fuel-powered private cars and purchase brand-new electric private cars. By scrapping and de-registering a qualifying old private car—and subsequently registering a brand-new electric private car under the "One-for-One Replacement" Scheme—owners are eligible for a First Registration Tax Concession of up to approximately HKD$172,500. Standard electric private cars (purchased without the "One-for-One Replacement" Scheme) are also eligible for a First Registration Tax Concession of up to HKD$58,000.

In this year's Budget, the Financial Secretary, Mr. Paul Chan, announced that the scheme would conclude on March 31, citing that the supply of electric private cars is now sufficient and prices have begun to decrease.

Following the announcement of the Budget, BYD established a dedicated team. Mr. Cheung said that the team provides a seamless, one-stop service covering the entire process: from answering customer inquiries and rapidly matching customers with ready stock vehicles—including popular models such as BYD ATTO 3, Dolphin, Seal, and Denza D9—to assisting with document preparation, expediting contract processing, and finally submitting the necessary paperwork to the Transport Department to complete vehicle registration.

Ample Stock Secured to Help Owners Beat the Scheme Deadline

Mr. Cheung stated that BYD has specifically reserved ample ready stock for Hong Kong customers—covering a wide range of popular models such as ATTO 3, Dolphin, Seal, and even the Denza D9—to ensure there are no supply shortages. Currently, most of the popular models remain in stock and are available for immediate allocation; nevertheless, availability for certain colors or configurations may be limited.

He noted that the team is going all out, aiming to help all prospective electric vehicle owners successfully "catch the last train" before the scheme deadline.

The team is going all out, aiming to help all prospective electric vehicle owners successfully "catch the last train" before the scheme deadline. Photo source: BYD HK

Although the "One-for-One Replacement" Scheme is drawing to a close, BYD HK remains highly confident in the local market for electric private vehicles. Mr. Cheung emphasized that "the inherent technical prowess of the products themselves, combined with their exceptional value for money" constitutes the cornerstone for winning consumer trust.

Recent geopolitical instability in the Middle East has led to fluctuations in international oil prices. Given Hong Kong's heavy reliance on imported energy, rising fuel costs will directly drive up operating expenses for traditional fuel-powered vehicles, which is anticipated to leverage the advantage of electric vehicles' energy costs and increase their market demand.

Premium Brand "Yangwang" Poised to Enter Hong Kong Market

BYD is currently actively preparing to introduce its high-end brand, "Yangwang" to Hong Kong, which is now in the final stages of market assessment and preparatory work. Mr. Cheung described "Yangwang" as the pinnacle of BYD's technological achievements, targeting high-end consumers who seek cutting-edge technology, ultimate performance, and a luxurious experience. In Hong Kong, its future primary competitors will be traditional European luxury automotive brands.

BYD is currently actively preparing to introduce its high-end brand, "Yangwang" to Hong Kong. Photo source: BYD HK

Mr. Cheung pointed out that within BYD's global "Going Global" strategy, Hong Kong serves as an irreplaceable "strategic springboard" and an international "super showroom". Taking the ATTO 3 as an example, its overnight success in turning the top-selling model in Hong Kong has allowed BYD to systematically replicate this winning formula in other right-hand-drive markets, significantly shortening the learning curve. The decision to introduce "Yangwang" to Hong Kong is a strategic move that sees the city's advantage in international influence, laying a solid foundation for the brand's future expansion into broader global markets.

Embracing a "Deep Localization" Strategy

Directed at the unique characteristics of the Hong Kong market, BYD has adopted a "deep localization" strategy, which not only involves far more than a simple conversion from left-hand to right-hand drive, but also encompasses a multitude of specific details. On the software front, the in-vehicle system features a traditional Chinese interface, along with authentic Cantonese voice recognition and navigation system. In terms of hardware, the vehicle's suspension system has been specially tuned to suit Hong Kong's hilly and winding road conditions. Mr. Cheung noted that the introduced models were specifically selected to ensure that their dimensions and driving range are well-suited to Hong Kong's urban environment.

Directed at the unique characteristics of the Hong Kong market, BYD has adopted a "deep localization" strategy. Photo by Bastille Post

With the number of electric vehicle owners increasing rapidly, Mr. Cheung revealed that BYD plans to establish additional repair centers to provide convenient after-sales support. Regarding pricing strategy, the group will continue to uphold its positioning of offering "exceptional value for money".

Looking ahead, the development of charging infrastructure and ecological construction remains crucial to the dissemination of electric vehicles. Mr. Cheung stated that BYD views itself as a key contributor to fostering a green mobility ecosystem in Hong Kong. The group actively collaborates with major charging service providers to ensure its vehicles are compatible with all mainstream charging standards. Furthermore, by facilitating the sharing of charging experiences within its owner community, BYD aims to help alleviate "charging anxiety" among potential buyers.

BYD actively collaborates with major charging service providers to ensure its vehicles are compatible with all mainstream charging standards. Photo by Bastille Post

BYD anticipates that in the early stages of the "One-for-One Replacement" Scheme's conclusion, the market may undergo a brief structural adjustment in sales volume. Nevertheless, Mr. Cheung also expressed unwavering confidence in the long-term future of Hong Kong's electric vehicle market. As the market returns to a competitive landscape driven primarily by product quality, safety, and value, BYD's inherent strengths are expected to become even more pronounced.

General Motors will be hit with charges of about $6 billion as sales of electric vehicles sputter after the U.S. cut tax incentives to buy them and also eased auto emissions standards.

Shares slid almost 3% Friday.

The charges that will be recorded in the fourth quarter follow an announcement in October that the Detroit automaker would take a $1.6 billion charge for the same reason in the previous quarter, with automakers forced to reconsider ambitious plans to convert their fleets to electric power.

The EV tax credit ended in September. The clean vehicle tax credit was worth $7,500 for new EVs and up to $4,000 for used ones.

GM, which had been the most ambitious among all U.S. automakers with plans to replace internal combustion engines, said in its filing with the Securities and Exchange Commission late Thursday that the $6 billion in charges includes non-cash impairments and other non-cash charges of about $1.8 billion as well as supplier commercial settlements, contract cancellation fees, and other charges of approximately $4.2 billion.

EVs have been considered to be the future of the US automotive industry. GM announced in 2020 that it was going to invest $27 billion in electric and autonomous vehicles over the next five years, a 35% increase over plans made before the pandemic.

GM expected more than half of its factories in North America and China would be capable of making electric vehicles by 2030. It also pledged at the time to increase its investment in EV charging networks by nearly $750 million through 2025.

Its goal was to make the vast majority of the vehicles electric by 2035, and the entire company carbon neutral five years after that.

Those plans have been shaken due to the drastic differences in economic and environmental policies between the Biden and Trump administrations.

China has become a global leader in electric vehicle technology in recent years, with factories there churning out millions of cars and laying the groundwork for a massive charging network for vehicles.

Earlier this month, Tesla was dethroned as the world's largest EV automaker, replaced by China's BYD, which produced 2.26 million electric vehicles last year.

Also Friday, Netherlands-based Stellantis, said that due to shifting customer demand it would “phase out plug in hybrid (PHEV) programs in North America beginning with the 2026 model year, and focus on more competitive electrified solutions.” Stellantis owns Jeep, Dodge, Chrysler and other carmakers.

FILE - The 2024 Chevrolet Silverado EV sits on display at the Chicago Auto Show, Thursday, Feb. 9, 2023, in Chicago. (AP Photo/Charles Rex Arbogast, File)