Shanghai to Offer Up to ¥20,000 in EV Trade-in and Scrappage Subsidies by 2026

The Shanghai Municipal Development and Reform Commission and the Municipal Finance Bureau recently issued a notice clarifying the implementation of an auto trade-in subsidy policy in 2026. Individual consumers who scrap eligible old vehicles (such as gasoline-powered cars registered before June 2013) and purchase new energy vehicles (NEVs) within 2026 will receive a subsidy equivalent to 12% of the new vehicle’s price, capped at RMB 20,000. Those opting to replace their old vehicles with fuel-powered cars with engine displacements of 2.0 liters or less will receive a 10% subsidy, capped at RMB 15,000. Additionally, consumers who trade in their old vehicles via second-hand vehicle transfer and purchase NEVs will be eligible for an 8% subsidy (capped at RMB 15,000), while those purchasing fuel-powered cars of the same engine displacement will receive a 6% subsidy (capped at RMB 13,000). All relevant invoices, vehicle registration documents, and scrappage certificates must be obtained within 2026. The old vehicle must have been registered under the consumer’s name on or before January 8, 2025, and the new vehicle must be invoiced and registered in Shanghai.