Dec. 31, the China Automobile Dealers Association said the 2026 old-for-new auto trade-in policy will significantly relax subsidy eligibility, with the number of beneficiaries and the consumption boost expected to rise sharply from 2025.
Image source: SAIC MG
Under the latest wording, the registration cutoff date for eligible used vehicles across categories will be pushed back by one year versus the 2025 criteria. That marks a tangible widening of the policy's reach, bringing more owners of older models into the fold to accelerate fleet renewal and unlock domestic demand.
The association's analysis highlights the core shift: a lower vehicle-age threshold for cars qualifying for subsidies. Vehicles previously excluded from the 2025 policy because they were registered slightly earlier would gain eligibility under the 2026 rules.
This key revision speaks directly to replacement needs among car owners, especially those with aging models. With a more inclusive tilt, it should foster broader and more sustained consumer incentives.
Preliminary estimates indicate that more than 12 million passenger cars nationwide could qualify for subsidies under the new rules. The consumption lift would be significant — potentially driving nearly 1.5 million new-car sales directly. By both the scale of eligible vehicles and the stimulus to the new-car market, the impact would clearly surpass the 2025 policy.
Industry watchers say that as policymakers focus on expanding domestic demand and shifting consumption from post-pandemic recovery to sustained growth, reigniting the auto market — a pillar of big-ticket spending — is crucial.
The continued rollout and timely easing of the trade-in program precisely targets the critical task of upgrading a vast stock of older vehicles. Guided by fiscal subsidies, it can lower the total cost of switching to a new car, strengthen willingness and ability to spend, and hasten the retirement of older vehicles with lower emission standards — a multi-faceted positive for energy saving and emissions reduction, as well as for technological and consumption upgrades across the industry.
The China Automobile Dealers Association said relaxing thresholds will deliver benefits to a broader pool of consumers, materially enhancing the policy's inclusiveness and effectiveness — injecting strong momentum into the auto market's growth in 2026.
