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China’s 2026 Car Trade-In Drive Tops ¥537.7 Billion in Sales by Feb. 5

Subsidies now scale with vehicle price to accelerate scrappage, favoring NEVs or ≤2.0L fuel models.

Overview

  • Ministry of Commerce data reported 335,000 subsidy applications through Feb. 5, generating ¥53.77 billion in new‑car sales.
  • Nationwide scrappage and recycling reached 659,000 vehicles, a 50.2% year‑on‑year increase.
  • In January, the average transaction price of new cars purchased through the program exceeded ¥160,000, higher than a year earlier.
  • The 2026 policy sets proportional subsidies with caps: for scrappage replacement, 12% of price for NEVs (up to ¥20,000) and 10% for ≤2.0L fuel cars (up to ¥15,000); for trade‑ins, 8% for NEVs (up to ¥15,000) and 6% for ≤2.0L fuel cars (up to ¥13,000).
  • Industry figures for 2025 show China held 68.4% of global NEV passenger‑car volumes and a used‑car market of 20.11 million transactions, including 1.61 million used NEVs up 43% year on year.