2026 New Energy Vehicle Subsidy Policy Takes Effect: Up to ¥35,000 Savings, Higher Tech Requirements

Starting January 12, 2026, a new round of subsidies for new energy vehicles (NEVs) will officially take effect. Consumers who scrap their old vehicles and purchase qualifying new energy passenger cars will receive a subsidy of 12% of the vehicle’s purchase price, capped at RMB 20,000. For trade-in purchases, the subsidy rate is 8%, with a maximum of RMB 15,000. When combined with the halved vehicle purchase tax (with a maximum reduction of RMB 15,000), buyers can save up to RMB 35,000 in total. For example, on a vehicle priced at RMB 100,000, scrapping an old car would result in total savings of approximately RMB 16,400, while opting for a trade-in would save about RMB 12,400. It should be noted that only models listed in the Ministry of Industry and Information Technology’s “Catalogue of New Energy Vehicle Models Eligible for Purchase Tax Exemption” qualify for both incentives simultaneously. Additionally, technical standards have been upgraded: the minimum all-electric range requirement for plug-in hybrid electric vehicles (including extended-range models) has been raised from 43 kilometers to 100 kilometers.