China Adjusts Vehicle Subsidies for 2026: Budget Cars See Smaller Support
Starting in January, China's vehicle subsidy program will undergo significant changes under the new policy announced by the National Development and Reform Commission. The shift from fixed subsidies to a percentage-based model with caps aims at supporting various price ranges differently.Key TakeawaysNew energy vehicles (NEVs) get 12% subsidy when scrapped, up to ¥20,000; gasoline cars see a cap of ¥15,000 at 10%The trade-in option offers NEV buyers an 8% subsidy with the same maximum limitsOlder vehicles registered before specific dates qualify for subsidies under both scrappage and trade-in policiesNew energy vehicle (NEV) owners who scrap their old rides will receive a higher percentage of support, but budget-friendly models won't benefit as much compared to high-end cars. This adjustme...
