The "2026 Auto Trade-in Subsidy Implementation Rules" issued by eight departments including the Ministry of Commerce are now fully in force: scrapping an eligible old car and buying an NEV earns a 12% price-based subsidy capped at RMB 20,000, while replacement (non-scrappage) subsidies cap at RMB 15,000. Combined with local subsidies and the purchase-tax reduction, buyers can save up to roughly RMB 35,000. Official data shows 3.707 million trade-in transactions in H1 2026.
National Subsidies: From Fixed Amounts to Price-Based Percentages
Under the 2026 Auto Trade-in Subsidy Implementation Rules jointly issued by the Ministry of Commerce and seven other departments, subsidies have shifted from 2025's fixed amounts to percentages of the new vehicle's price, covering both scrappage-based and replacement-based renewal:
Scenario | NEV passenger car | ICE passenger car (≤2.0L) |
|---|---|---|
Scrappage renewal | 12% of price, max RMB 20,000 | 10% of price, max RMB 15,000 |
Replacement renewal | 8% of price, max RMB 15,000 | 6% of price, max RMB 13,000 |
Key rules:
Scrappage and replacement subsidies are mutually exclusive; each consumer may claim once per year;
Scrapping an NEV to buy an ICE vehicle receives no subsidy;
The old and new vehicles must be registered to the same individual; corporate vehicles are excluded.
Eligibility Thresholds and How to Apply
Registration-date requirements for scrapped vehicles (nationwide):
Gasoline passenger cars: registered on or before June 30, 2013;
Diesel and other-fuel passenger cars: registered on or before June 30, 2015;
NEV passenger cars: registered on or before December 31, 2019.
Applications can be filed via the "Auto Trade-in" mini-program on WeChat, Alipay, Douyin or UnionPay, or through the national vehicle circulation information system website. Eligible applications are to be reviewed within 15 working days and paid within 30 working days. The policy window runs January 1 to December 31, 2026, while funds last.
Triple Stacking: Up to ~RMB 35,000 in Total Savings
According to Tencent News, stacking the national subsidy with local government subsidies and the purchase-tax reduction can bring total savings to around RMB 35,000 — with the national scrappage-to-NEV subsidy alone reaching RMB 20,000.
On implementation progress, the Ministry of Commerce disclosed 3.707 million auto trade-ins in H1 2026, about one-third of the full-year 2025 application volume. An industry researcher noted that this year's total subsidy pool is roughly in line with last year's, and at the current pace "the funds may not even be fully spent" — a stark contrast to 2025, when many localities exhausted their quotas right after the National Day holiday, underscoring softer end-market demand this year.
Tips for Consumers
Scrappage renewal pays more, but the old car must meet the registration-date thresholds;
Replacement renewal is simpler — no scrapping required; sell your own car and buy a new one to qualify;
Track your city's local top-up subsidies and remaining quota before timing your purchase.
For more auto consumption policy analysis and local subsidy updates, follow EX1000.COM.
