August Policy Benefits Arrive Intensively, New Energy Vehicle Market Gains Strong Momentum in "Golden September and Silver October"

August has ended, and the new energy vehicle industry is entering the traditional "Golden September and Silver October" sales peak season, with multiple favorable policies being rolled out intensively, continuously injecting strong momentum into the market. At both the national and local levels, coordinated efforts have established a dual-driven system of "macro guidance + micro incentives," promoting the industry to advance into a new stage of high-quality development.

Through an analysis of major policies, it is found that at the national level, the focus is on industry standards and top-level design. This includes the protection of truck drivers' rights, tax incentives for fuel types, regulation of intelligent connected technology, and multi-level financial support, highlighting a systematic layout of policies to promote healthy, safe, and innovative coordinated development of the industry.

It is particularly noteworthy that alternative fuels such as hydrogen and methanol have been officially included in the scope of tax deductions, and methanol-hydrogen vehicles have entered the new energy vehicle subsidy list for the first time. This marks an increasingly clear stance by the country in supporting diversified technological routes, providing clear guidance for production line expansion and corporate strategic planning.

Local policies place greater emphasis on implementation and regional characteristics. Many regions stimulate consumer demand and invigorate the industry by offering subsidies for charging infrastructure construction, incentives for vehicle replacement and renewal, as well as rewards for production and sales. These measures lay a solid foundation for industrial development and enhance the competitiveness of regional clusters.

Looking ahead, policy dividends will continue to be released. With increased support for cutting-edge fields such as intelligent connectivity and hydrogen fuel cells, the new energy vehicle industry is expected to embrace a more diversified and integrated pattern of innovation, bringing a new round of development opportunities for market participants.

The following is a summary of the main policies.

National level

Ministry of Transport: Actively Exploring Mutual Aid Insurance for Truck Drivers

On August 27, the Ministry of Transport held a regular press conference, during which spokesperson and Deputy Director of the Policy Research Office Li Ying responded to questions regarding the implementation progress and subsequent measures of the "Truck Driver Escort" special campaign.

Li Ying introduced that last month, the Ministry of Transport, together with the Ministry of Civil Affairs, the Ministry of Human Resources and Social Security, and the All-China Federation of Trade Unions, officially launched the "Truck Drivers Escort" special campaign. Since the implementation of the escort campaign, the Ministry of Transport, in coordination with relevant departments, has guided local authorities to strengthen communication and contact, promptly identify and obtain information on truck drivers who suffer accidental injuries or fatalities during transportation.

The Ministry of Finance of China has clarified that using hydrogen and methanol as fuels (energy sources) is eligible for tax deduction policies.

On August 13, the Ministry of Finance and the State Administration of Taxation jointly issued the "Announcement on Clarifying VAT Policies for Express Delivery Services and Other Related Services."

The announcement states that for taxpayers qualified to operate road freight transportation via online platforms (hereinafter referred to as online freight transportation), when engaging in online freight transportation operations, the input tax amount of refined oil, natural gas, electricity, hydrogen, dimethyl ether, methanol, and other vehicle fuels (energy) purchased and provided by themselves to the actual carriers for use, as well as the road, bridge, and lock tolls paid, may be deducted from the output tax amount if the following conditions are both met: First, the aforementioned fuels (energy) and tolls must be used for transportation services completed by the actual carriers entrusted by the taxpayer; second, the obtained VAT deduction certificates must comply with current regulations.

Two departments solicit opinions: clear boundaries between assisted driving and autonomous driving, OTA upgrades not allowed without prior filing.

On August 13, it was announced that the State Administration for Market Regulation, in conjunction with the Ministry of Industry and Information Technology, has drafted the "Notice of the State Administration for Market Regulation and the Ministry of Industry and Information Technology on Strengthening the Supervision and Management of Recalls, Production Consistency, and Standardized Promotion of Intelligent Connected New Energy Vehicle Products (Draft for Comments)." This draft is now open to the public for comments, with feedback due by September 15, 2025. This initiative aims to implement the requirements of the "Regulations on the Management of Defective Automobile Product Recalls" and the "Notice on Further Strengthening the Access, Recall, and Software Online Upgrade Management of Intelligent Connected Vehicle Products," further regulating the intelligent connected new energy vehicle market.

Seven departments support multi-level financing for emerging industry enterprises such as intelligent connected vehicles.

On August 5th, the People's Bank of China, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and five other departments jointly issued the "Guiding Opinions on Financial Support for New Industrialization." The document proposes supporting the cultivation and growth of emerging industries and the forward-looking layout of future industries. It supports eligible enterprises in emerging industries such as intelligent (connected) vehicles, new energy, new materials, and network and data security to raise funds in multi-level capital markets. It adheres to differentiated policies with both support and control, promotes the accelerated advancement of industries toward medium- and high-end levels, and prevents "involution-style" competition.

Policy dividends continue to drive methanol-hydrogen vehicles into the ranks of new energy vehicles.

Recently, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the "Guiding Opinions on Accelerating the Development of the Methanol Hydrogen Vehicle Industry," clearly including methanol hydrogen vehicles in the subsidy range for new energy vehicle promotion and application. The document sets targets for achieving demonstration operations with thousands of vehicles by 2025 and large-scale promotion by 2030. Under the continuous release of policy dividends, the methanol hydrogen vehicle industry chain is rapidly emerging as a new growth pole in the new energy vehicle sector, following pure electric and hybrid models.

Local level

Henan: Provincial Subsidy Application for New Energy Vehicle Charging Infrastructure Now Open

On August 25, the Henan Provincial Department of Finance and multiple other departments jointly issued the "Notice on the Application for Provincial Subsidy Funds for New Energy Vehicle Charging Infrastructure in 2024 and the Provincial Review and Fund Settlement for County-level Demonstrative Centralized Public Charging Stations."

The notice specifies that the provincial incentive funds for new energy vehicle charging infrastructure in Henan Province for the year 2024 will be based on the total budget for the fiscal year.

Hainan Province Adjusts 2025 Car Trade-in and Renewal Subsidy Policy

Recently, the Hainan Provincial Department of Commerce issued an announcement regarding adjustments to the 2025 Hainan Province automobile replacement and renewal subsidy policy. Starting from August 25, additional subsidy eligibility conditions will be added to the “2025 Hainan Province Automobile Replacement and Renewal Subsidy Implementation Rules.” For new cars purchased by individual consumers on or after August 25, 2025 (inclusive, based on the invoice date stated on the “Uniform Motor Vehicle Sales Invoice”), the new vehicle must be registered and licensed in Hainan Province. During the subsidy application review period, the purchased vehicle must be registered under the applicant’s name.

An additional 300 million yuan! Latest adjustment to Chongqing's 2025 automobile trade-in and renewal subsidy

On August 15, the Chongqing Municipal Commission of Commerce issued the "Notice on Adjusting the Policies Related to the 2025 Vehicle Replacement Subsidy" (hereinafter referred to as the "Notice"), stating that in accordance with the relevant provisions that "subsidy funds shall be used up or the policy shall expire," the first phase of the vehicle replacement subsidy funds in Chongqing have been fully utilized. To continuously leverage the policy's incentive effect, an additional budget of 300 million yuan has been allocated for the third quarter of 2025 vehicle replacement subsidies, to be implemented through a monthly disbursement approach.

The "Notice" states that a budget quota of 200 million yuan in August 2025 and 100 million yuan in September 2025 will be allocated, following the principle of "total amount control, first come first served, and ends when the quota is used up."

Announcement on the Adjustment of the Old-for-New Subsidy Policy Issued by the Heilongjiang Government

On the evening of August 19, the People's Government of Heilongjiang Province issued the "Announcement on the Adjustment of the Subsidy Policy for Consumer Goods Trade-in," which adjusted the subsidy policy for vehicle replacement and renewal. The adjusted policy will take effect from August 23 (inclusive).

According to the announcement, individual consumers participating in the Heilongjiang Province vehicle trade-in and upgrade subsidy policy will receive subsidies based on the pre-tax price of the new car, divided into three tiers. For fuel vehicles, those with a new car sales price below 150,000 yuan (exclusive) will receive a subsidy of 5,000 yuan per vehicle; those priced from 150,000 yuan (inclusive) to below 250,000 yuan (exclusive) will receive a subsidy of 8,000 yuan per vehicle; and those priced at 250,000 yuan (inclusive) or above will receive a subsidy of 11,000 yuan per vehicle. For new energy vehicles, the subsidy in each tier will be increased by 2,000 yuan compared to fuel vehicles. Consumers who purchase new cars on or before August 22 will continue to follow the original subsidy standards. Apart from the adjustment in subsidy standards, other matters will be implemented in accordance with the relevant provisions of the "2025 Heilongjiang Province Vehicle Trade-in and Upgrade Subsidy Implementation Rules." The purchase date and price of the new car will be determined based on the invoice date and price as indicated on the "Uniform Invoice for Motor Vehicle Sales."

Chengdu: To promote the development of the new energy vehicle industry, a maximum production and sales reward of 50 million yuan will be given for a single vehicle model.

Recently, the Chengdu Municipal Government released a draft policy on promoting the high-quality development of the new energy vehicle industry, which clearly states that production and sales incentives will be provided for eligible new energy vehicle models, with a maximum reward of up to 50 million yuan per model.

It is reported that this draft for public consultation includes two major projects: production and sales incentives for new energy vehicles and rewards for strengthening, stabilizing, and supplementing the industrial chain. The policy is valid until December 31, 2025. Meanwhile, the "Chengdu Financial Incentive Implementation Rules for Promoting the Development of the New Energy Vehicle Industry" issued on June 15, 2023, will cease to be effective.

Hainan: Support the cultivation of green manufacturing industry clusters centered on new energy vehicles and other areas.

On August 4th, Hainan Province released the "Three-Year Action Plan for Accelerating the Construction of a Modern Industrial System with Characteristics and Advantages in Hainan Province (2025-2027)." The plan proposes to cultivate and expand industrial clusters, focusing on the "Five-direction Strengthening" strategy to build industrial clusters that are distinctive, well-supported, and highly competitive, enhancing their "innovation content," "green content," and "value content." It emphasizes key support for the development of industrial clusters in sectors such as energy conservation and environmental protection, low-altitude economy, modern logistics, and artificial intelligence. At the same time, it supports Haikou in focusing on fields like new energy vehicles and energy conservation and environmental protection to cultivate green manufacturing industrial clusters.

Fujian Ningde: Implementation of Free Mandatory Inspection for Electric Vehicle Charging Piles

On August 5th, the Ningde City Market Supervision Administration of Fujian Province issued a notice regarding the mandatory verification of electric vehicle charging stations. It was decided to implement mandatory verification on electric vehicle charging stations (including both AC and DC charging stations) that directly provide charging services to the public and are used for commercial transactions.

Henan: Accelerate the planning and construction of new energy vehicle industry clusters, and support the extension and supplementation of the industrial chain.

The General Office of the People's Government of Henan Province has formulated the "Several Policy Measures to Promote the Sustained Upward and Positive Economic Development in the Second Half of 2025" (hereinafter referred to as the "Measures") and recently released them.

The "Measures" specify:

Focus on cultivating key manufacturing industry clusters: Advance the construction of the “7+28+N” key industrial clusters, accelerate the planning and development of new energy vehicle industrial parks, and support the extension and supplementation of the industrial chain for industries such as new energy vehicles. By 2025, automobile production will exceed 2 million units, of which new energy vehicles will surpass 1.4 million units.

Enhance the quality and effectiveness of the trade-in program for consumer goods: Organize activities such as the "Hundred Counties and Thousand Towns New Energy Vehicle Consumption Season," with the aim of achieving the scrapping and replacement of 500,000 vehicles by 2025 and promoting the scrapping and renewal of 4,700 old commercial trucks.

Ensure safe production: carry out comprehensive chain rectification of safety issues related to the "one-stop service" for new energy vehicle charging infrastructure.

Focus on reducing enterprise costs: fully implement policies such as toll reductions for hydrogen-powered trucks, toll discounts for electric trucks, and differentiated highway toll policies.