2026 Auto Trade-In Program Drives New Car Sales Past $100 Billion

As of February 19, the 2026 consumer goods trade-in program has benefited 28.88 million people and driven sales worth RMB 198.02 billion. Of this, 612,000 vehicles were traded in under the auto trade-in initiative, generating RMB 100.53 billion in new vehicle sales. According to a policy issued by the National Development and Reform Commission and the Ministry of Finance at the end of 2025, subsidies for vehicle trade-ins have been adjusted from fixed amounts to percentages of the vehicle’s purchase price: consumers scrapping their old vehicles and buying new energy vehicles (NEVs) are eligible for a subsidy of 12% of the vehicle price (capped at RMB 20,000), while those purchasing conventional fuel-powered vehicles receive a 10% subsidy (capped at RMB 15,000). For vehicle replacements without scrappage, subsidies are set at 8% (capped at RMB 15,000) for NEVs and 6% (capped at RMB 13,000) for fuel vehicles. During this year’s Spring Festival holiday, consumers could still apply for subsidies as usual, and local governments have strengthened financial support to ensure smooth implementation of the policy.