Xi'an upgraded its auto consumption subsidy policy effective August 1, 2026. NEV purchases receive 2% of invoice price (max RMB 10,000), with additional RMB 2,000-3,000 for 2026 new models. Used car subsidies cap at RMB 4,000. Valid through October 8.
Subsidy Policy Fully Upgraded
Starting August 1, 2026, Xi'an has upgraded its automobile consumption subsidy policy. According to Xi'an Release and Tencent News, this policy covers multiple dimensions including new NEV purchases and used car replacements, representing a local initiative under the national backdrop of promoting auto consumption.
Specific subsidy standards are as follows:
| Vehicle Type | Subsidy Standard | Maximum Amount |
|---|---|---|
| NEV passenger vehicles (base) | 2% of invoice price | RMB 10,000 |
| New NEV RMB 90K-150K (additional) | Fixed subsidy | RMB 2,000 |
| New NEV above RMB 150K (additional) | Fixed subsidy | RMB 3,000 |
| Used passenger vehicles | 1.5% of invoice price | RMB 4,000 |
Important Rules:
- Effective period: August 1 to October 8, 2026
- Application basis: Vehicle purchase invoice date or order confirmation date
- Quota limit: Subsidies stop when funds are exhausted — first come, first served
- Model requirement: NEV passenger vehicles must be included in the "Catalog of New Energy Vehicle Models Eligible for Vehicle Purchase Tax Reduction/Exemption"
Subsidy Amount Calculation
Taking different price points for new NEVs as examples, consumers can receive:
- Purchasing a RMB 150,000 new NEV: Base 150K×2%=RMB 3,000 + additional RMB 2,000 = RMB 5,000
- Purchasing a RMB 200,000 new NEV: Base 200K×2%=RMB 4,000 + additional RMB 3,000 = RMB 7,000
- Purchasing a RMB 500,000 new NEV: Base capped at RMB 10,000 + additional RMB 3,000 = RMB 13,000
This means consumers purchasing new NEVs at RMB 500,000 and above can receive up to RMB 13,000 in subsidies, equivalent to 2.6% of the vehicle price. For vehicles under RMB 150,000, the subsidy ratio can reach approximately 4.7% (including additional subsidies), showing clear policy preference for entry-level NEVs.
Used car subsidies are also noteworthy:
- Purchasing a used car with RMB 200,000 invoice: 200K×1.5%=RMB 3,000 subsidy
- Purchasing a used car with RMB 300,000+ invoice: Capped at RMB 4,000
Policy Signals and Market Impact
Xi'an's policy upgrade sends multiple signals:
- NEV priority: The policy clearly focuses subsidies on NEV passenger vehicles, reflecting government determination to promote green mobility
- New model orientation: Additional subsidies for 2026 newly launched models aim to stimulate manufacturers to introduce new vehicles and consumers to upgrade
- Used car linkage: Used car subsidies cover the full lifecycle of auto consumption, making the chain from new to used car transactions smoother
- Short window: The validity period is only about 2 months (until October 8), with funds running out when exhausted, creating urgency to drive quick consumption
For Central Asian and Russian dealers following China's auto market, Xi'an's policy has reference significance:
- Local governments are stimulating NEV consumption with real financial subsidies
- Growth in China's NEV market comes not only from products themselves but also from continuous policy support
- Subsidies tilting toward new models indicates that replacement demand is an important policy lever
Currently, this policy is only valid within Xi'an city limits, but its policy logic and subsidy model may be adopted by other cities. EX1000.COM will continue tracking the evolution of auto consumption policies across China.
Key Points:
- NEV base subsidy: 2% of invoice price, max RMB 10,000
- New model additional subsidy: RMB 2,000-3,000
- Used car subsidy: 1.5% of invoice price, max RMB 4,000
- Validity: August 1 to October 8, 2026
