Which Cars Can Apply for the 2026 National Subsidy? A Clear Explanation of Subsidy Amounts

On December 30th, the National Development and Reform Commission and the Ministry of Finance, along with other departments, issued a document clarifying the 2026 vehicle trade-in policy. Compared to 2025, although the upper limit of the "national subsidy" amount remains unchanged, both the form and method of the subsidy have changed. We strive to explain everything clearly in this article.

Let's take a look at the subsidy amount.If you scrap your old car and then purchase a new energy passenger car included in the "Catalogue of New Energy Vehicle Models Exempt from Vehicle Purchase Tax" or a fuel passenger car with an engine displacement of 2.0 liters or less, you can receive a one-time subsidy. For the purchase of a new energy passenger car, a subsidy of 12% of the car price is provided, with a maximum of 20,000 yuan; for the purchase of a fuel passenger car with an engine displacement of 2.0 liters or less, a subsidy of 10% of the car price is provided, with a maximum of 15,000 yuan. If you sell your old car and then purchase a new energy passenger car included in the "Catalogue of New Energy Vehicle Models Exempt from Vehicle Purchase Tax" or a fuel passenger car with an engine displacement of 2.0 liters or less, you can also receive a one-time subsidy. For the purchase of a new energy passenger car, a subsidy of 8% of the car price is provided, with a maximum of 15,000 yuan; for the purchase of a fuel passenger car with an engine displacement of 2.0 liters or less, a subsidy of 6% of the car price is provided, with a maximum of 13,000 yuan.

Now let's take a look at the subsidy conditions.If it is an old car scrapping, the gasoline passenger car under the applicant's name must be registered before June 30, 2013 (including that day). Diesel and other fuel passenger cars must be registered before June 30, 2015, and new energy passenger cars must be registered before December 31, 2019. If it is an old car transfer, there are no specific requirements regarding the vehicle registration date, but it should be noted that regardless of whether it is an old car scrapping or transfer, the old car must be registered under the applicant's name before January 8, 2025. The newly purchased car that meets the conditions must have the "Motor Vehicle Sales Uniform Invoice" and "Motor Vehicle Registration Certificate" issued or handled in the same provincial region.

Overall, in 2026, the "national subsidy" policy for vehicle trade-ins will be more detailed, and the subsidy based on the price ratio of the car will better promote the sales of high-end models. According to estimates from Yicai, under the new standards, to receive the full corresponding scrapping and updating subsidy, the purchased new energy vehicle must be priced at over 166,700 yuan, and the fuel vehicle must be priced at over 150,000 yuan; to receive the full trade-in and updating subsidy, the purchased new energy vehicle must be priced at 187,500 yuan, and the fuel vehicle must be priced at 216,700 yuan.

Lang Xuehong, vice secretary-general of the China Automobile Dealers Association, believes that the new subsidy policy means that the same amount of funding can subsidize more vehicles. Cui Dongshu, secretary-general of the Passenger Car Association, stated, "The subsidy policy exceeds expectations and is conducive to a smooth policy transition, promoting consumption upgrades." He predicts that the car market in 2026 will show a trend of "low at the beginning, high at the end," with January likely to present a positive start. The China Automobile Dealers Association has preliminarily estimated that in 2026, the number of passenger cars benefiting from subsidies is expected to exceed 12 million, driving nearly 1.5 million new vehicle sales, and the policy will benefit more consumers.