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<Research>Galaxy Securities: CN Lifts 2026 National Subsidy Threshold for Cars; Subsidies for NEVs Priced Below RMB187.5K Under Trade-In Program Drop
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China's National Development and Reform Commission and Ministry of Finance recently issued a notice on implementing a large-scale equipment renewal and consumer goods trade-in policy in 2026, according to a report from China Galaxy Securities. The central government has already allocated the first batch of RMB62.5 billion in ultra-long-term special treasury bonds to local governments ahead of schedule to support the consumer goods trade-in funding program, meeting strong consumption demand during the New Year's Day and Spring Festival holidays. That being said, restrictions on car subsidies have been tightened. While the subsidy cap remains unchanged, the fixed-amount subsidy will be adjusted to a percentage of the vehicle price. Consumers who scrap and replace their old cars will receive a subsidy equal to 12% of the price (up to RMB20,000) for purchasing a new energy vehicle (NEV), or 10% (up to RMB15,000) for a fuel-powered passenger vehicle with an engine of 2.0 liters or below. For consumers trading in their old cars, the subsidy will be 8% of the price (up to RMB15,000) for an NEV, or 6% (up to RMB13,000) for a fuel-powered passenger vehicle with an engine of 2.0 liters or below. Compared with 2025, subsidies under the scrappage renewal program have been reduced for NEVs or fuel vehicles priced below RMB166,700 and RMB150,000 respectively. Under the trade-in renewal program, subsidies have been reduced for NEVs or fuel vehicles priced below RMB187,500 and RMB216,700 respectively. AAStocks Financial News |
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