Hubei Launches 2026 Auto Trade-In Subsidy Program, Offering Up to ¥20,000

Recently, the Hubei Provincial Department of Commerce and seven other departments jointly issued the "Detailed Implementation Rules for Hubei Province’s 2026 Automobile Trade-in Subsidy Program," which will take effect on January 1, 2026. The policy covers two scenarios: scrappage replacement and trade-in replacement. Under the scrappage replacement scheme, individuals who scrap an eligible old vehicle and purchase a new energy vehicle (NEV) will receive a subsidy of 12% of the new vehicle’s purchase price, capped at RMB 20,000. Those purchasing a fuel-powered vehicle with an engine displacement of 2.0 liters or less will receive a 10% subsidy, capped at RMB 15,000. For trade-in replacements, subsidies are set at 8% for NEVs (capped at RMB 15,000) and 6% for fuel vehicles (capped at RMB 13,000). Applicants must meet specific conditions, including that the old vehicle was registered before January 8, 2025, and the new vehicle is registered in Hubei Province. Each individual is eligible for the subsidy only once. Subsidy funds will be managed monthly and allocated weekly. Approved subsidies will be disbursed within 30 working days, and strict measures will be enforced to prevent fraudulent claims, ensuring fairness and broad accessibility.