Gasgoo Munich- On July 21, the Henan provincial government held a special briefing to announce a slate of new policies aimed at boosting consumption and stabilizing the economy in the second half of 2026. The province is doubling down on trade-in subsidies, promising support that matches or exceeds the intensity of the first half. By offering incentives across vehicles, home appliances, and digital products, authorities aim to unlock consumer spending, with the new round expected to benefit more than 10 million people.
Trade-in programs were the engine behind Henan’s consumption growth in the first half, and officials are deepening the policy to sustain that momentum. The expanded rules now cover core mass-market categories with clearer subsidy standards, designed to cut the cost of upgrading. The auto sector takes center stage with the most aggressive support: individual consumers can receive up to 20,000 yuan for scrapping and replacing a vehicle, or up to 15,000 yuan for a standard trade-in. These measures aim to lower the barrier to entry and help revive the automotive market.
The new rules also deliver tangible benefits for household spending. Consumers upgrading six essential appliance categories—refrigerators, washing machines, televisions, air conditioners, computers, and water heaters—can claim subsidies of up to 1,500 yuan. Tapping into the smart-tech trend, the program now covers four categories of digital products: mobile phones, tablets, smartwatches and fitness bands, and smart glasses. Single-item subsidies cap at 500 yuan, a move tailored to the spending habits of younger consumers.
Focusing on high-frequency spending scenarios, the new policy avoids token gestures and instead targets three key sectors: mobility, home living, and digital goods. It balances the need for essential household upgrades with the demand for personal tech. By ratcheting up trade-in incentives, the province aims to accelerate the retirement of older products while breathing new life into the market—ultimately lowering costs for residents and delivering real economic relief.
