Trade-In Programs Drive Auto Upgrades, with New Energy Vehicles Leading the Charge

From 2024 to 2025, a total of 18.3 million vehicles nationwide were replaced under the "trade-in for new" program, with nearly 60% being new energy vehicles (NEVs). According to the "White Paper on Consumer Insights into Automotive Trade-In Programs," jointly released by Dongchedi and China Automotive Technology & Research Center (CATARC), 81.2% of internal combustion engine (ICE) vehicle owners chose NEVs as their first preference when replacing their cars, and 74.1% of consumers purchased new vehicles priced above RMB 200,000, reflecting a clear trend toward "consumption upgrading." Chinese brands have taken a dominant position in the replacement market thanks to their strong product competitiveness. Dongchedi has handled subsidy applications for multiple provinces, providing services totaling over RMB 34 billion and benefiting 2.82 million consumers, thereby driving RMB 460 billion in new vehicle sales. Starting in 2026, the subsidy policy will expand to cover 17 provinces and municipalities nationwide, with subsidies uniformly distributed as a percentage of the new vehicle’s purchase price. The primary reasons cited by consumers for trading in their vehicles are “cost savings” and “better user experience,” with NEV owners placing particular emphasis on driving range and charging convenience. Industry experts project that the trade-in policy in 2026 could stimulate demand for more than 1.5 million additional new vehicles.