China’s National Development and Reform Commission and Ministry of Finance have announced adjustments to the country’s vehicle trade-in subsidy program for 2026. The new policy shifts from fixed subsidies to a percentage-based model with maximum caps, providing more tailored support across different vehicle price ranges.
Under the updated policy, consumers who scrap their old vehicles and purchase new ones will receive subsidies calculated as a percentage of the new vehicle’s price:
The Ministry of Commerce has specified detailed eligibility criteria:
For vehicle scrapping subsidies:
The scrapped vehicle must have been registered under the applicant’s name before January 8, 2025.
For vehicle trade-in subsidies:
Editor’s comment
The shift from fixed subsidies to percentage-based incentives represents a significant policy evolution. While maximum subsidy caps remain unchanged from 2025, the new calculation method means:
This approach is part of China’s broader initiative to promote equipment renewal and consumer product trade-ins, which also includes subsidies for household appliances, digital products, and smart home devices.

Liu Miao
Writer
Liu Miao covers NEVs and batteries at CNC to contribute to the energy transition, in spare time he loves driving his EV around.

source