China’s Auto Subsidies Favor Higher-End Models in 2026
Chinese policymakers' decision to adjust auto trade-in subsidies for next year won't be a breeze for budget automakers. The changes, announced yesterday, will see lower-priced models receiving less support compared to their pricier counterparts.Key TakeawaysThe subsidy caps remain unchanged at RMB 20,000 for scrapping old vehicles and RMB 15,000 for trade-ins in 2026.New rules will reduce per-vehicle subsidies significantly for mid-to-low-priced cars priced below RMB 150,000.Automakers like Leapmotor, BYD, and Geely are expected to suffer the most from these changes.The new subsidy policy is set to favor high-end vehicles over affordable models. This shift in strategy aims at promoting technological innovation within the industry while optimizing its product mix. With higher-priced cars ty...
