Shanghai Continues Pushing Auto Trade-In Program and Implements Multiple Consumption-Boosting Measures

The Shanghai Municipal Commission of Commerce recently issued the "Shanghai Consumer Expansion Action Plan for 2026," which calls for accelerating efforts to boost automotive consumption through vehicle replacement. The plan explicitly states that Shanghai will continue promoting trade-in programs for older vehicles to fully unlock the potential of auto consumption. It also supports eligible consumers in applying for dedicated quotas for new energy vehicles (NEVs) and ensures implementation of the NEV purchase tax exemption policy. Additionally, the plan aims to streamline the entire automotive circulation chain to facilitate the phasing out and replacement of aging vehicles. It will foster and expand the used-car dealer sector and maintain convenient measures such as lifting restrictions on inter-regional transfers of used cars, enabling "reverse invoicing" for used-car sales, and simplifying cross-regional transaction registration procedures. Moreover, automakers are encouraged to offer trade-in incentives, providing trade-in services linked to new vehicle sales or leasing—either through their own channels or in collaboration with used-car dealers.