Gasgoo Munich- Hubei province has unveiled detailed rules for its 2026 car trade-in subsidy program, offering consumers up to 20,000 yuan. Jointly issued by the provincial Department of Commerce, the Development and Reform Commission, the Department of Economy and Information Technology, and five other agencies, the policy supports individual purchases of new-energy vehicles (NEVs) and small-displacement internal combustion models through two pathways: scrapping or trading in. The program begins on January 1, 2026.
Image source: Screenshot of Hubei Provincial Department of Commerce official website
The subsidies target two specific scenarios. Under the scrapping program, consumers who scrap gasoline passenger cars registered before June 30, 2013, diesel or other fuel vehicles registered before June 30, 2015, or NEVs registered before December 31, 2019, are eligible. Those purchasing a new NEV included in the national tax-exemption catalog receive a subsidy equal to 12% of the vehicle's sales price, capped at 20,000 yuan. For purchases of fuel-powered passenger cars with a displacement of 2.0 liters or less, the subsidy covers 10% of the price, with a maximum of 15,000 yuan.
For trade-ins, consumers who sell their existing passenger vehicles can receive an 8% subsidy on the purchase of a new NEV, up to 15,000 yuan. If they opt for a fuel-powered vehicle with 2.0 liters or less displacement, the subsidy rate drops to 6%, with a ceiling of 13,000 yuan.
Eligibility for both subsidy tiers requires that the old vehicle was registered in the applicant's name prior to January 8, 2025. Additionally, the invoice and registration for the new vehicle must be processed within Hubei province, and the applicant must be the same individual. Subsidies are limited to one per person during the policy's implementation period.
Funding will be managed via monthly caps, with the provincial Department of Commerce coordinating spending plans and cities and prefectures receiving weekly allocations. Regarding processing, eligible applications will be accepted within three working days, reviewed within 15, and paid out within 30. To ensure enforcement, authorities have established a joint oversight mechanism to combat fraud. The policy also explicitly prohibits designating specific recycling companies or imposing additional regional or product restrictions, aiming to ensure broad and fair access.
