2026 Auto Trade-In Subsidy Policy Clarified: Percentage-Based Subsidies Up to RMB 20,000

[Policy Announcement] Detailed rules for the 2026 auto trade-in subsidy program have been released, offering percentage-based subsidies for consumers who scrap or trade in their old vehicles to purchase new ones.

⚡ Key Update: Subsidies Shift from Fixed Amounts to Vehicle Price-Based Percentages

Consumers who scrap an eligible old vehicle and purchase a new energy passenger car will receive a subsidy of 12% of the new vehicle’s purchase price, capped at RMB 20,000. For purchases of fuel-powered vehicles with engine displacements of 2.0 liters or below, the subsidy is 10%, with a cap of RMB 15,000. In trade-in scenarios, subsidies are set at 8% for new energy vehicles and 6% for fuel-powered vehicles, both capped at RMB 15,000.

🔍 Strategic Rationale: Strengthening a Unified National Market and Promoting New Energy Vehicles

The policy, jointly issued by the Ministry of Commerce and seven other government departments, takes effect on January 1, 2026. It explicitly supports vehicle models listed in the "Catalog of New Energy Vehicles Eligible for Exemption from Purchase Tax" and implements uniform national standards to prevent regional fragmentation and drive optimization of consumption patterns.