2026 Policy on Scrapping and Replacing Old Commercial Trucks Takes Effect

[Policy Update] The new 2026 policy on subsidies for scrapping and replacing old commercial trucks has been clarified, offering up to RMB 140,000 per vehicle.

Key Developments: Equal Focus on China III and China IV Standards, with Stronger Push Toward Electrification

Dual subsidies—covering both scrapping and replacement—are provided for diesel and natural gas commercial trucks meeting China III or China IV emission standards and holding a valid Road Transport Permit. Scrapping alone yields a maximum subsidy of RMB 25,000 for medium-duty trucks and RMB 45,000 for heavy-duty trucks. If replaced with a China VI-compliant fuel-powered truck, total subsidies range from RMB 50,000 to RMB 110,000. Replacing with a new energy (electric or other alternative fuel) truck qualifies for combined subsidies of up to RMB 140,000, including a separate subsidy of RMB 35,000 per vehicle for newly purchased new energy urban cold-chain delivery trucks.

Strategic Foundation: Coordinated Phase-Out to Accelerate Green Transformation of Freight Transport

Unlike the 2025 policy, which primarily targeted China III vehicles, the 2026 policy explicitly provides equal support for both China III and China IV vehicles, covering approximately 500,000 existing older trucks. Aligned with the national 'Two New' strategy, the policy prioritizes the adoption of electric trucks to reinforce pollution reduction and carbon mitigation pathways in the transportation sector.